Which of the Following Represents 20% as Reduced to Its

question 12

Multiple Choice

Which of the following represents 20% as reduced to its lowest term?

• A) 1/6
• B) 1/5
• C) 2/5
• D) 2/4

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Definitions:

Book Value

The net value of a company's assets found on the balance sheet, calculated as total assets minus intangible assets (patents, copyrights) and liabilities.

Residual Value

The estimated amount that an asset is worth at the end of its useful life.

Annual Depreciation Expense

Annual depreciation expense is the portion of the cost of a fixed asset that is expensed each year over its useful life, reflecting its decrease in value.

Straight-Line Depreciation

A method of allocating the cost of an asset evenly over its useful life, indicating how much of the asset's value has been used up each year.