Which of the Following Is Not True Regarding Depreciation

question 30

Multiple Choice

Which of the following is not true regarding depreciation?

• A) depreciation allocates the cost of a fixed asset over its estimated life.
• B) depreciation expense reflects the decrease in market value each year.
• C) depreciation is an allocation not a valuation method.
• D) depreciation expense does not measure changes in market value.

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Definitions:

Promontory

A high point of land or rock projecting into a body of water or over a lowland, often offering broad views of the surrounding area.

Longshore Current

A current that runs parallel to the shore, generated by waves hitting the shoreline at an angle.

Spit

A small point or low ridge of sand or gravel projecting from the shore into a body of water.

Wave-cut Platform

A flat, often wide area at the base of a cliff created by the erosion of waves at the shore.