To Measure Depreciation,all of the Following Must Be Known EXCEPT

question 28

Multiple Choice

To measure depreciation,all of the following must be known EXCEPT

• A)market value.
• B)residual value.
• C)historical cost.
• D)estimated life.

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Definitions:

Initial Value Method

The initial value method is an accounting approach used in investments where the investment is recorded and maintained at its acquisition cost, ignoring market fluctuations.

Acquisition Method

An accounting method used in business combinations, where the purchasing entity records the assets and liabilities of the acquired entity at fair value.

Internal Reporting

The process of preparing and presenting financial statements and other reports to management within an organization.