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If the Asset Has a Finite Useful Life,the Company Must

question 103

True/False

If the asset has a finite useful life,the company must include in their financial statement disclosures the useful life or the amortization rates used.


Definitions:

Constant

A value that does not change in mathematical expressions or economic models, acting as a fixed point of reference.

Diminishing

A principle indicating that as more of a good or service is consumed, the marginal benefit to the consumer decreases.

Behavioral Economics

A field of economic research that examines the effects of psychological, cognitive, emotional, cultural, and social factors on economic decisions.

Rational

In economics, refers to individuals making decisions that will provide them with the greatest benefit or satisfaction given their limited resources.

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