All of the Following Statements Concerning Synthetic Gems Are True

question 9

Multiple Choice

All of the following statements concerning synthetic gems are true EXCEPT:

• A) many synthetic gems are indistinguishable from natural ones except by laboratory analysis.
• B) synthetic gems are generally inferior to natural gems.
• C) synthetic gems are generally cheaper than natural gems.
• D) many of the diamonds used in both industry and in jewelry are synthetic.

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Definitions:

Depreciable Cost

The total amount that an asset’s value can be depreciated over its useful life, excluding salvage value.

Salvage Value

The conjectured remain value of an asset at the end of its productive life.

Straight-Line Method

A technique for determining depreciation or amortization by equally distributing an asset's cost throughout its lifespan.

Salvage Value

An asset’s expected trade-in value at the point it concludes productive life.