Writing Down the Value of a Capital Asset,reported as an Expense,is

question 95

Multiple Choice

Writing down the value of a capital asset,reported as an expense,is called:

• A) downgrading.
• B) depreciation.
• C) documentation.
• D) reduction.

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Definitions:

Potential Benefit

The expected advantages or positive outcomes that may result from a specific action, investment, or decision.

Sunk Cost

A cost that has already been incurred and cannot be recovered, and thus should not impact future business decisions.

Gross Margin

The difference between sales revenue and the cost of goods sold, usually expressed as a percentage of sales revenue.

Net Operating Income

Income generated from regular business operations, excluding deductions for interest and taxes.