When Calculating a Partial Year's Depreciation,the Length of Time an Asset

question 47

Multiple Choice

When calculating a partial year's depreciation,the length of time an asset has been owned usually is rounded to the nearest month.This rounding practice is justified by the principle or rule of

• A)matching.
• B)materiality.
• C)conservatism.
• D)full disclosure.

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Definitions:

Omitted Terms

Terms or clauses that are not explicitly included in a contract or legal document but may be implied or necessary for completeness.

Contract

A legally enforceable agreement between two or more parties that is binding and requires each party to fulfill certain obligations.

Implied

In legal context, refers to obligations or rights that are not explicitly stated but are understood as a part of the agreement or contract.

Intervening Illegality

A situation where a change in law or illegal act by a third party prevents the fulfillment of a contract, thereby excusing performance by the contracted parties.