Which of the Following Is Not a Factor in Selecting

question 43

Multiple Choice

Which of the following is not a factor in selecting a depreciation method?

• A) salvage value
• B) repair and maintenance costs
• C) financial statement effects
• D) the risk associated with the cash flows from the asset

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Definitions:

Proprietor's Income

Represents the earnings of the owner of a business, factoring in revenue minus expenses and taxes.

Unincorporated Enterprises

Businesses that are not legally separated from their owners, meaning the owner is personally liable for the debts of the business.

Corporate Executives

High-ranking officials within a corporation, responsible for making strategic decisions.

Total Income

The sum of all earnings or revenue received by an individual or an entity, including wages, profits, rents, and other forms of earnings.