Which of the Following Must Be Considered in Estimating Depreciation

question 68

Multiple Choice

Which of the following must be considered in estimating depreciation on an asset for an accounting period?

• A) only the original cost of the asset
• B) only the asset's useful life
• C) both the original cost of the asset and its useful life
• D) the decline in its fair market value

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Definitions:

Intestacy Law

Legal provisions that govern the distribution of a deceased person's estate when they die without a valid will, determining how assets are allocated among survivors.

Estate Planning

Planning in advance how one’s property and obligations should be transferred on one’s death. Wills and trusts are two basic devices used in estate planning.

Duty of Loyalty

An obligation of fiduciaries, such as corporate directors or trustees, to act in the best interest of their beneficiaries or the corporation without conflict of interest.

Powers of Attorney

Legal documents that grant one person the authority to act on behalf of another in legal or financial matters.