Your Accounting Records Show That an Asset in Use Has

question 49

Multiple Choice

Your accounting records show that an asset in use has book value of $7 119.14. The asset cost $30 000 when it was purchased and has been depreciated under the declining balance depreciation method with a 25% depreciation rate. How many years has the asset been in service?

• A)1 year
• B)2 years
• C)3 years
• D)4 years
• E)5 years

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Definitions:

Sales Of Goods

Transactions or agreements involving the exchange of tangible, movable items between parties for money or other consideration.

Temporary Insurance

A limited-term coverage that provides immediate protection until a permanent insurance policy is issued or denied.

Actual Policy

The specific, enforceable terms and conditions of an insurance contract as it has been issued.

Binder

A binder is a temporary insurance agreement that provides coverage until a formal, permanent policy is issued, often used in property and casualty insurance scenarios.