The Purpose of Depreciation Is to ________

question 30

Multiple Choice

The purpose of depreciation is to ________.

• A) establish the current replacement cost of a fixed asset
• B) accumulate funds to replace a fixed asset
• C) set aside cash to replace a fixed asset
• D) allocate the original cost of a fixed asset to the periods that benefit from the use of the fixed asset

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Definitions:

Deindividuation

The feeling that one’s self has merged with a group.

Risky Shift

The tendency for group members, after discussion and interaction, to engage in riskier behavior than they would while alone.

Organizational Ritualism

A situation in which rules become ends in themselves rather than means to an end.

Normative Organizations

These are groups individuals voluntary join due to shared interests or values, such as charities or religious organizations.