The Data String for a Standard Transaction May Be Compared

question 27

Multiple Choice

The data string for a standard transaction may be compared to

• A) a collage of many parts of a claim placed in random order.
• B) a line of various size train cars with an engine and caboose.
• C) the rings of a tree with the most important part inside, surrounded by larger pieces of data.
• D) complete gibberish nonsense that must be de-encrypted by a computer to be understood.

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Definitions:

Depreciation Expense

An accounting method of allocating the cost of a tangible or physical asset over its useful life to account for declines in value.

Half-Year Convention

The half-year convention is a method in depreciation accounting where an asset is assumed to have been in service for half the year, regardless of when it was actually acquired during the fiscal year.

Incremental Depreciation

The additional depreciation expense recorded when there is a change in the estimated useful life or salvage value of an asset.

Opportunity Costs

The cost of foregone alternatives, representing the benefits one could have received by taking an alternative action.