All of the Financial Statements Are for a Period of Time

question 45

Multiple Choice

All of the financial statements are for a period of time except the

• A) income statement.
• B) owner's equity statement.
• C) balance sheet.
• D) statement of cash flows.

---

Definitions:

Depreciation Expense

Dividing the expense of a material asset throughout its service life.

Straight-Line Depreciation

A method of depreciating an asset evenly over its useful life, allocating an equal portion of the asset's cost as an expense in each accounting period until it reaches its salvage value.

Depreciable Cost

Depreciable cost is the cost of a fixed asset minus its salvage value, over which the asset's cost can be depreciated over its useful life.

Partial Year

A term referring to a portion of a year, often used in the context of accounting and financial analysis for periods less than 12 months.