Under AASB 116, the Depreciation Charge for a Period Reflects

question 8

Multiple Choice

Under AASB 116, the depreciation charge for a period reflects:

• A) the fall in the re-sell value of the asset across the period.
• B) the consumption of economic benefits over the period.
• C) a change in the market value of the asset that has occurred over the period.
• D) a reduction in the estimated fair value of the asset across the period.

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Definitions:

Statement Of Financial Position

A balance sheet is a financial statement that outlines a company's equity, liabilities, and assets at a certain date.

Inventory

Goods and materials that a business holds for the ultimate goal of resale or processing.

Sales Discounts

Reductions in price given by a seller to a buyer, often to prompt early payment or reward customer loyalty.

Early Payment

A payment made before its due date, which can sometimes qualify the payer for discounts or improved credit terms.