Aside from a Home, the Real Property Investment Most Widely

question 95

Multiple Choice

Aside from a home, the real property investment most widely favored by the small investor is:

• A) a post office building.
• B) land.
• C) a building with 30 or more apartments.
• D) a condominium.
• E) the duplex, four-plex, or small apartment building.

Understand how changes in estimates affect depreciation calculation.

Discriminate between capital and revenue expenditures.

Understand the accounting treatment for disposal of plant assets.

Recognize the importance of the expense recognition principle in relation to depreciation.

---

Definitions:

Programmed Decisions

Automatic responses to routine and recurring situations.

Recurring Situations

Situations or events that happen repeatedly over time, often showing a pattern or cycle.

Automatic Responses

Reactions that occur with little to no conscious thought, often resulting from learned behaviors or innate instincts.

Programmed

Refers to something that is set up or prepared in advance according to a plan, often used in the context of computer programming or automated processes.