In the Following Diagram, Which Answer Is True

question 13

Multiple Choice

In the following diagram, which answer is true?

• A) Each employee can supervise one employee, no employees or many employees.
• B) Each employee can manage many departments.
• C) Each employee works in more than one department.
• D) Each employee was fired.

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Definitions:

Depreciation Expense

An accounting method to allocate the cost of a tangible asset over its useful life, reflecting wear and tear, deterioration, or obsolescence.

Residual Value

The estimated value of an asset at the end of its useful life.

Double Diminishing-Balance

A method of accelerated depreciation that computes depreciation at double the rate of the straight-line method.

Carrying Amount

The book value of assets or liabilities as recorded in the financial statements, after accounting for depreciation, amortization, or impairment.