The Most Important Objective for Depreciation Expense Is

question 28

Multiple Choice

The most important objective for depreciation expense is:

• A) accuracy.
• B) classification.
• C) cutoff.
• D) disclosure.

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Definitions:

GAAP

Generally Accepted Accounting Principles, a set of rules encompassing the details, complexities, and legalities of business and corporate accounting in the United States.

Acid-Test Ratio

A financial metric that measures a company's ability to pay off its current liabilities with its quick assets, such as cash, accounts receivable, and short-term investments.

Quick Assets

Quick Assets are those assets that can be quickly converted into cash, typically including cash, marketable securities, and receivables.