Depreciation Is

question 205

Multiple Choice

Depreciation is

• A)an effort to achieve proper matching of the cost of operating assets.
• B)an accumulation of funds to replace the related plant asset.
• C)the difference between the original cost and salvage value of an asset.
• D)the cash allocated each period to maintain a plant asset.

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Definitions:

Nominal Income

The amount of money earned in current dollars, without adjustment for inflation, affecting purchasing power over time.

Real Income

Income of individuals or nations after adjusting for inflation, reflecting the actual purchasing power.

Anticipated

Expected or foreseen based on current trends or available information.

Borrowers

Individuals or entities that receive funds from a lender with the agreement to repay the borrowed amount plus interest.