IFRS Specify That Depreciation Is the Term to Be Used

question 73

True/False

IFRS specify that depreciation is the term to be used, whereas ASPE allow both amortization and depreciation to be used.

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Definitions:

Petty Cash Fund

A small amount of cash on hand that is used for covering minor expenses in a business.

Office Supplies

Items such as pens, paper, and other materials used in an office setting for daily operations.

Merchandise Inventory

Goods that a business intends to sell to customers for a profit.

Days' Sales

An analysis technique used to estimate the average time it takes for a company to collect cash from sales.