Depreciation Is Required Because It Is Generally Accepted That

question 3

Multiple Choice

Depreciation is required because it is generally accepted that:

• A) Assets will decrease in value over time.
• B) The economic benefits of an asset will not last indefinitely.
• C) Wear and tear on an asset must be recorded as an expense.
• D) Even though land may go up in value its cost needs to be recognised as an expense.
• E) None of the given answers.

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Definitions:

Psychological Contract

An unwritten agreement of mutual expectations between employees and employers beyond the formal employment contract.

Contributions

Refers to the individual or collective acts of adding or donating something of value to a project, cause, or body of knowledge.

Psychological Contract

The unwritten, implicit expectations and agreements between employees and their employers regarding their mutual obligations.

Inducements

Incentives or rewards offered to employees or other parties to motivate desired behaviors or actions.