Which of the Following Statements Most Appropriately Describes the Purpose

question 4

Multiple Choice

Which of the following statements most appropriately describes the purpose of depreciation of a long-lived tangible asset?

• A)To indicate how the asset has physically deteriorated.
• B)To show that the asset will eventually and gradually become obsolete.
• C)To record that the asset's market value declines over time.
• D)To match the cost of the asset to the period in which it generates revenue.

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Definitions:

Complex Fraction

A fraction where the numerator, the denominator, or both contain a fraction.

Simplify

The process of making an equation, expression, or problem easier to handle by reducing its complexity while maintaining its equivalence.

Complex Fraction

A fraction where the numerator, denominator, or both contain a fraction.

Simplify

Simplifying involves reducing an expression or equation to its most basic form, making it easier to work with.