All of the Following Statements Are False Regarding Depreciation Except

question 35

Multiple Choice

All of the following statements are false regarding depreciation except

• A)depreciation is an asset valuation process.
• B)depreciation does not apply to land improvements.
• C)recognizing depreciation results in the accumulation of cash for asset replacement.
• D)depreciation does not apply to land.

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Definitions:

Realized

Pertaining to gains or losses that have occurred and have been completed through the sale or other disposition of an asset.

Realizable

Pertaining to assets, it refers to the amount of money that can be received from their sale or disposal under normal circumstances.

Percentage-of-Completion

An accounting method typically used in long-term contracts, recognizing revenues and expenses in proportion to the work completed during the period.

Installment

A method of paying for goods or services or the repayment of a loan in parts, typically on a monthly basis, over a period of time.