The Terms Used for Classification of Items on the Statement

question 138

Multiple Choice

The terms used for classification of items on the Statement of Changes in Fiduciary Net Assets are:

• A) Revenues and Expenses.
• B) Additions and Deductions.
• C) Revenues and Expenditures.
• D) Contributions and Expenses.

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Definitions:

Carrying Amount

Carrying amount, also known as book value, is the value recorded on the balance sheet for a particular asset, reflecting its original cost minus any depreciation, amortization, or impairment costs.

Accumulated Depreciation

The total amount of depreciation expense that has been recorded against an asset over its useful life.

Impairment Loss

An impairment loss occurs when the carrying amount of an asset exceeds its recoverable amount, indicating the asset is not expected to generate future benefits worth its recorded value.

Accumulated Depreciation

The total amount of depreciation expense allocated to an asset since it was put into use.