Which of the Following Statements About Depreciation Is Correct

question 46

Multiple Choice

Which of the following statements about depreciation is correct

• A) Each year the accountant adds an amount for depreciation when calculating the company's profit.
• B) The annual depreciation charge measures the cash that the company has spent on maintaining and renewing its plant and equipment.
• C) To calculate the cash produced by the business, it is necessary to deduct the depreciation charge from accounting profits.
• D) To calculate the cash produced by the business, it is necessary to add the depreciation charge back to accounting profits.

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Definitions:

Extrinsic Motivation

Motivation that is driven by external rewards such as money, fame, grades, or praise.

Assignment

A task or piece of work allocated to someone as part of a job or course of study.

Intrinsic Motivation

The drive to engage in an activity for its own sake and personal rewards.

Performs Behavior

The act of carrying out actions or responses by an organism or individual in response to external or internal stimuli.