Each of the Following Is Used in Computing Revised Annual

question 180

Multiple Choice

Each of the following is used in computing revised annual depreciation for a change in estimate except

• A) book value.
• B) cost.
• C) depreciable cost.
• D) remaining useful life.

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Definitions:

Initial Cost

The upfront expenditure associated with the acquisition of an asset or the launch of a project.

Net Present Value

A valuation method used to estimate the attractiveness of an investment, by calculating the present value of expected future cash flows minus the initial investment cost.

Cash Flow

The overall volume of cash and cash-equivalents that are exchanged in and out of a business entity.

Timing

The selection of an optimal time or period for making an investment, launching a product, or executing a decision to maximize benefits or outcomes.