Which of the Following Must Be Considered in Estimating Depreciation

question 463

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
• The Accounting Information System 3 - 11

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Definitions:

Connectionist Theory

A cognitive science theory proposing that mental phenomena can be explained by interconnected networks of simple units resembling neural networks.

Gestalt Psychology

A psychological theory that emphasizes understanding the whole experience rather than breaking it down into individual components.

Direct Perception

The theory that suggests sensory information is inherently meaningful and that objects in the environment afford opportunities for action without the need for cognitive processing.

Affordances

The opportunities or possibilities for action provided by objects and environments to an organism.