Commercial Codes

question 277

Multiple Choice

Commercial codes:

• A) date back thousands of years
• B) began in England in the early 1800s to use in the British empire
• C) were started by the United Nations in the 1950s
• D) were started by the World Trade Organization in the 1980s
• E) none of the other choices

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Definitions:

Allowable Depreciation

The deduction a company can take over the useful life of an asset, as determined by tax laws, to account for wear and tear.

Straight-Line Method

A method of calculating depreciation by evenly spreading the cost of an asset over its useful life.

Resale Value

The expected amount that an item or asset can be sold for at a future date, taking into account depreciation and market demand.

Sum-Of-The-Years-Digits

An accelerated method of depreciation which calculates annual depreciation by multiplying an asset's cost by a fraction that decreases year by year.