Which of the Following Statements Most Appropriately Describes the Purpose

question 55

Multiple Choice

Which of the following statements most appropriately describes the purpose of amortization of a long-lived tangible asset?

• A)To indicate how the asset has physically deteriorated.
• B)To show that the asset will eventually and gradually become obsolete.
• C)To record that the asset's market value declines over time.
• D)To match the cost of the asset to the period in which it generates revenue.

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Definitions:

Experimental Methodology

A research method involving the manipulation of variables to test hypotheses and observe effects in controlled conditions.

Ethnocentrism

The act of judging another culture solely by the values and standards of one's own culture, often leading to biased perceptions.

Biased Sample

A sample that does not accurately represent the population from which it's drawn, often due to a selection process that favors certain characteristics.

Representative

Someone who stands in or acts on behalf of others, often in a political, sales, or customer service capacity.