Accumulated Depreciation Is A(n)________ Account and Carries a Normal ________

question 75

Multiple Choice

Accumulated Depreciation is a(n) ________ account and carries a normal ________ balance.

• A) revenue; debit
• B) expense; debit
• C) contra asset; credit
• D) liability; credit

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Definitions:

Constant-Growth DDM

A valuation method that estimates the value of a stock by using its expected dividends, which grow at a constant rate indefinitely.

Intrinsic Value

The actual, inherent value of an asset, without respect to market value or external factors.

Market Capitalization Rate

A rate that represents the return expected by investors on a security or a portfolio, typically reflective of the risk and growth prospects.

Earnings Retention Ratio

The earnings retention ratio, also known as the plowback ratio, measures the percentage of net earnings a company retains to reinvest in the business, as opposed to distributing to shareholders as dividends.