Which of the Following Best Describes the Objective of Depreciation

question 97

Multiple Choice

Which of the following best describes the objective of depreciation?

• A)To allocate the cost of a tangible asset to the periods in which its use contributes to earning revenue.
• B)To estimate the remaining useful life of the asset.
• C)To report the asset on the balance sheet at the estimated amount for which the asset could be sold on the balance sheet date.
• D)To estimate the current market value of the asset.

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Definitions:

Universal

Refers to concepts, principles, or conditions that are globally applicable or common to all instances.

Babble

The sounds, syllables, and simple vocalizations made by babies as an early form of speech development.

Chomsky

Refers to Noam Chomsky, an influential linguist known for his theory of innate grammar and criticism of behaviorism, contributing to the cognitive revolution.

Holophrases

Single-word expressions used by infants that convey complete ideas or requests.