Elian Wants to Start a Business

question 40

Multiple Choice

Elian wants to start a business. He takes a personality test and discovers he possesses a trait that may reduce the likelihood he will succeed. Which of the following is that trait?

• A) creativity
• B) low tolerance for risk
• C) vision
• D) internal locus of control

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Definitions:

Depreciation Expense

An accounting method for allocating the cost of a tangible asset over its useful life, representing the asset's consumption, wear and tear, or obsolescence.

Straight-Line Method

The straight-line method is a depreciation technique that allocates an equal amount of depreciation expense for a fixed asset to each year of its useful life.

Salvage Value

The estimated market valuation of an asset following the end of its useful duration.

Depreciation Expense

The charge to the income statement for a particular period that represents the allocation of the cost of tangible assets over their useful lives.