Which of the Following Best Describes the Objective of Depreciation

question 82

Multiple Choice

Which of the following best describes the objective of depreciation?

• A)To allocate the cost of a tangible asset to the periods in which its use contributes to earning revenue.
• B)To estimate the remaining useful life of the asset.
• C)To report the asset on the balance sheet at the estimated amount for which the asset could be sold on the balance sheet date.
• D)To estimate the current replacement cost of the asset.

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Definitions:

Parapsychology

The study of paranormal phenomena, including ESP and psychokinesis (also called telekinesis).

Precognition

The alleged psychic ability to see or know about events before they happen.

Kinesthesia

The sense of movement and body position, often referred to as muscle memory or the ability to feel movements of the limbs and body.

Precognition

The purported psychic ability to see or know about events before they happen, which remains a controversial and largely scientifically unproven concept.