If, at the End of the Accounting Period, Non-Current Assets

question 38

Multiple Choice

If, at the end of the accounting period, non-current assets total $800 000 and depreciation is calculated based on 8% per annum straight line, depreciation expense would total:

• A)$64 000
• B)$46 000
• C)$800 000
• D)$10 000

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Definitions:

Long Run

the period in which all factors of production and costs are variable, allowing for all possible adjustments, including the adoption of new technology.

Short-run Equilibrium

A condition in which demand and supply are equal in a particular market or industry, but only for a temporary period due to fixed factors in the short term.

Monopolistic Competition

A market structure characterized by many firms offering products that are similar but not identical, leading to competitive pricing and product differentiation.

Monopoly

A market structure characterized by a single seller selling a unique product in the market.