It Is Expected That the Service Potential of a Non-Current

question 54

Multiple Choice

It is expected that the service potential of a non-current asset will decline over time.The appropriate accounting treatment is to:

• A) amortise the asset over its useful life.
• B) disclose the effect in the notes to the statement of financial position if it is material in nature.
• C) write-off the asset.
• D) accrue the difference as a payable in adjusting entries at the end of the period.

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Definitions:

Entombment

A burial practice involving the placing of a body into a tomb or grave.

Burial

The act of placing the dead body of a person or animal in the ground as a part of the funeral rites.

Cemetery Reforms

Initiatives and changes aimed at improving the conditions, management, and sustainability of burial grounds.

Construction

The process of building or assembling infrastructure, buildings, and other physical structures.