Which of the Following Statements About the End of an Asset's

question 267

Multiple Choice

Which of the following statements about the end of an asset's life is correct?

• A)At the end of an asset's life,its book value should equal its depreciable cost.
• B)At the end of an asset's life,the Accumulated Depreciation should equal the residual value.
• C)Assets are depreciated below residual value only when the double-declining balance method is used.
• D)At the end of an asset's life,the book value would equal zero if there is no residual value.

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Definitions:

Endogenous

Originating from within a system, referring to factors or variables in economic models that are determined by the dynamics within the model itself, as opposed to external influences.

Business Cycle

The natural rise and fall of economic growth that occurs over time, including periods of expansion, peak, recession, and recovery.

External Shocks

Events outside the economic system that can cause sudden and significant changes within an economy, such as natural disasters or geopolitical events.

Last Recession

Describes the most recent period of significant decline in economic activity across the economy, lasting more than a few months.