How Many of These Factors Will Have an Effect on the Amount

question 58

Multiple Choice

How many of these factors will have an effect on the amount of depreciation charged on an asset in a particular accounting period?
Cost or revalued amount of asset
The size of the asset
 Method of depreciation used
 Estimated residual value of asset

• A) 1
• B) 2
• C) 3
• D) 4

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Definitions:

Tasks

Specific pieces of work or activities to be completed, often as part of a larger project or duty.

Gratuitous Agent

An agent who acts on behalf of another person (the principal) without expecting or receiving any form of compensation.

Consideration

Something of value exchanged between parties in a contract, making the agreement legally binding.

Agency Relationship

A legal relationship in which one party, the agent, acts on behalf of another, the principal, in dealings with third parties.