Which One of the Following Statements Is an Advantage of the Group

question 90

Multiple Choice

Which one of the following statements is an advantage of the group and composite methods of depreciation?

• A)Faulty estimates are concealed for long periods.
• B)Gains are deferred beyond the period in which they actually occurred.
• C)Record keeping is simplified.
• D)Losses are not recognized in the period in which they occur.

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Definitions:

Substitutes

Goods or services that can be used in place of each other, where an increase in the price of one leads to an increased demand for the other.

Income Elasticity

A measure of how much the quantity demanded of a good changes in response to a change in consumers' income.

Demand Inelastic

When the quantity demanded of a good or service is relatively unchanged in response to price changes.

Directly Related

A situation where two variables move in the same direction, meaning if one increases, the other also increases and vice versa.