Which One of the Following Disclosures Is Required by Generally

question 2

Multiple Choice

Which one of the following disclosures is required by generally accepted accounting principles?

• A)depreciation expense for each major class of asset
• B)balances of major classes of depreciable assets by nature or function
• C)accumulated depreciation on each depreciable asset
• D)an explanation of why the depreciation method used was selected by management

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Definitions:

Efficient Quantity

The level of output where the marginal benefit to consumers equals the marginal cost of producing an additional unit, leading to optimal resource allocation.

Economic Efficiency

A condition in which all resources are distributed in the most efficient manner, ensuring that every individual or organization benefits optimally, with minimal waste and inefficiencies.

Economic Efficiency

A state where resources are allocated in a way that maximizes the production of goods and services without wasting any resources.