The Use of Acquisition Cost Less Depreciation in Valuing an Asset

question 8

Multiple Choice

The use of acquisition cost less depreciation in valuing an asset on the balance sheet is the logical result of the _ accounting convention.

• A) cost benefit
• B) materiality
• C) conservatism
• D) continuity

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Definitions:

Flux

Flux, in the context of electromagnetism, refers to the rate of flow of a property per unit area, such as the magnetic field lines per unit area in a magnetic circuit.

Induction Motor

An induction motor is a type of asynchronous electric motor where power is supplied to the rotor by electromagnetic induction, rather than direct electrical connection.

Line-voltage

The voltage level provided by the electrical utility company, typically present in power lines.

Reverse Direction

Moving in the opposite direction to the usual or expected way.