Which of the Following Statements About Depreciation Is True

question 106

Multiple Choice

Which of the following statements about depreciation is true?

• A)Depreciation is the allocation of the cost of equipment to expense.
• B)Depreciation represents the reduction in the market value of the asset.
• C)Depreciation is the cash paid each month to use a piece of equipment.
• D)Depreciation is the same under both cash-based and accrual-based accounting.

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Definitions:

Biomes

Large naturally occurring communities of flora and fauna occupying major habitats, like forests, deserts, and tundras.

Converted

Changed or transformed in form, character, or function.

Overriding Climate

A dominant climate condition or change that has a significant impact on environmental and societal patterns over a wide area.

Temperature

A measure of the thermal energy of a system, reflecting how hot or cold an object is.