Which of the Following Is Not a Factor Affecting the Calculation

question 127

Multiple Choice

Which of the following is not a factor affecting the calculation of straight-line depreciation?

• A) Carrying amount.
• B) Cost.
• C) Useful life.
• D) Residual value.

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Definitions:

Asset Turnover Ratio

A ratio measuring how effectively a business uses its assets to produce sales income.

Property, Plant, and Equipment

Tangible long-term assets owned by a business, used in the production or supply of goods and services, such as buildings, machinery, and vehicles.

Accumulated Depreciation

It represents the total amount of depreciation expense that has been recorded for an asset over its life.

Intangible Assets

Non-physical assets owned by a business, such as patents, trademarks, and copyrights.