The Purpose of the Depreciation Adjustment Is To

question 103

Multiple Choice

The purpose of the depreciation adjustment is to:

• A) spread the cost invested in an asset over its useful life.
• B) show the current market value of the asset.
• C) set up a reserve fund for purchasing a new asset.
• D) expense the full amount of the asset in the year purchased.

---

Definitions:

Legitimate Power

The capacity to influence others by virtue of formal authority, or the rights of office.

Expertise

Specialized knowledge or skills in a particular area or field, typically obtained through experience or training.

Servant Leadership

Leadership that is follower-centered and committed to helping others in their work.

Follower-Centred

An approach focusing on the needs, behaviors, and contributions of followers in the leadership process.