Which of the Following Statements Is the Assumption on Which

question 23

Multiple Choice

Which of the following statements is the assumption on which straight-line depreciation is based?

• A) The operating efficiency of the asset decreases in later years.
• B) Service value declines as a function of time rather than use.
• C) Service value declines as a function of obsolescence rather than time.
• D) Physical wear and tear are more important than economic obsolescence.

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Definitions:

Crankshaft

A mechanical part which translates the linear motion of pistons into rotational motion, fundamental to the functioning of an internal combustion engine.

Energy Content

The amount of energy present in a substance or system, which can be released or absorbed during a chemical or physical process.

Fuel

A substance consumed to produce energy through a chemical or nuclear reaction, commonly referring to materials used to power engines, such as gasoline or diesel.

Four-Cylinder Engine

An internal combustion engine with four cylinders arranged in a straight line, commonly found in small to medium-sized vehicles.