Which of the Following Is Not True Regarding Depreciation

question 68

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:

Individual Agent's Death

The termination of an agency relationship caused by the death of the agent, affecting contractual and legal obligations.

Authority Of An Agent

The legally bestowed power an agent has to act on behalf of another person or entity, often defined by a contract or law.

Signed By The Principal

An act where the main party in a transaction or legal document formally endorses it, validating its terms or agreement.

Fiduciary Duty

The legal obligation to act in another party's best interest, often found in relationships involving trust, like between a lawyer and client or shareholder and company director.