All of the Following Are Nominal Quantities Except The

question 29

Multiple Choice

All of the following are nominal quantities except the:

• A)price of a new car.
• B)wages paid to workers at a restaurant.
• C)cost of purchasing a new computer.
• D)number of houses built in one month.

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Definitions:

Depreciation Expense

The allocated amount of an asset’s cost expensed over its useful life to account for the decline in its value over time.

Freight Charges

Fees associated with the transportation of goods from one location to another.

Double-Declining-Balance

An accelerated method of depreciation that computes depreciation at twice the straight-line depreciation rate.

Depreciation Expense

Depreciation expense represents the systematic allocation of the cost of a tangible asset over its useful life, reflecting its consumption, wear and tear, or obsolescence.