The Factors Involved in Computing Periodic Depreciation Charges for an Asset

question 45

Multiple Choice

The factors involved in computing periodic depreciation charges for an asset do not include the

• A)method of cost allocation
• B)current value of the asset
• C)service life
• D)residual value of the asset

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Definitions:

Market Price

The current financial value at which an asset or service can be acquired or disposed of in the market.

Ownership Position

The stake or interest that a person or entity has in an asset.

Shares Outstanding

The total number of shares that are currently owned by all shareholders, including share blocks held by institutional investors and restricted shares owned by the company’s officers and insiders.

Market Price

The ongoing rate at which a product or service is traded in a certain market.