The Relevant Factors in Computing Depreciation Do Not Include

question 8

Multiple Choice

The relevant factors in computing depreciation do not include:

• A)Cost.
• B)Salvage value.
• C)Useful life.
• D)Depreciation method.
• E)Market value.

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Definitions:

Accounts Payable

Liabilities to creditors for goods, services, or supplies delivered or used in the earning process but not yet paid for.

Free Cash Flow

A financial measure representing the amount of cash generated by a business that is available for distribution to its security holders after accounting for reinvestment in assets.

Investing Cash Flows

Cash transactions associated with buying and selling long-term assets and other investments, reflecting a company’s investment activities.

Financial Cash Flows

The inflows and outflows of cash resulting from a company's financial activities, such as financing and investing operations.