Which of the Following Is Not a Factor in Computing

question 54

Multiple Choice

Which of the following is not a factor in computing depreciation for a period?

• A) method of cost allocation
• B) service life
• C) present value
• D) residual value

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Definitions:

Adjustments

Modifications made to financial statements to correct errors, account for omitted transactions, or bring the statements in line with Generally Accepted Accounting Principles (GAAP).

Long-term Investments

Assets held for an extended period with the intention of achieving capital gains, dividends, or interest income.

Classified Balance Sheet

A balance sheet that organizes assets and liabilities into subcategories for clarity.

Intangible Assets

Assets that cannot be physically touched or held, such as patents, trademarks, and goodwill.