Which of the Following Statements Is True

question 4

Multiple Choice

Which of the following statements is true?

• A) Depreciation is a process of objective valuation.
• B) Depreciation means that a business sets aside cash to replace assets as they become fully amortized.
• C) Accumulated depreciation represents a growing amount of cash to be used to replace the existing asset.
• D) Accumulated depreciation is that portion of property, plant, and equipment's cost that has already been recorded as an expense.

---

Definitions:

Open-Book Management

A business strategy that involves sharing financial and operational information with employees to involve them more in decision-making and improve business results.

Approach

The method or strategy used to tackle a problem, task, or situation, often implying a specific angle or direction.

Yin and Yang

Ancient Chinese philosophy describing contrasting but complementary forces or principles that are interconnected and interdependent in the natural world.

Taoism

An ancient spiritual tradition that is both a philosophy and a religion; Tao, or “the Way” is present in all that exists, and, through the complementary forces of yin and yang, is the source of endless change in the world.