A Company Should Depreciate a Long-Lived Tangible Asset To

question 83

Multiple Choice

A company should depreciate a long-lived tangible asset to:

• A)match part of the cost of the asset with the revenues generated by the asset.
• B)record the decrease in the market value of the asset as it gets older.
• C)report less income and pay less income tax.
• D)decrease the total value of its assets,so that it can justify buying new ones.

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Definitions:

Few Exceptions

A small number of instances or cases that do not follow the general rule.

HDC

Stands for Holder in Due Course, referring to a party that has acquired a negotiable instrument in good faith and for value, thus having certain rights above the original parties.

Payee

The individual or entity to whom a payment is to be made or who receives the payment.

Note

A written record or reminder, often used in contracts or financial transactions to denote terms, obligations, or agreements.