Depreciation Expense Is Based on Estimates of ________

question 42

Multiple Choice

Depreciation expense is based on estimates of ________.

• A) the value of the asset
• B) the use and purpose of the asset
• C) the life and pattern of the asset's use
• D) the warranty that comes with the asset

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Definitions:

Ratification

The act of approving or sanctioning an agreement or treaty that makes it officially valid.

Unauthorized Act

An action taken by an individual or entity without permission or authority, potentially leading to legal consequences or invalidation of the act.

Principal

In finance, this term refers to the original sum of money borrowed in a loan, or the amount of the investment itself, excluding any interest or profit.

Agent

A person or entity authorized to act on behalf of another person or entity in contractual or legal matters.