Depreciation Is a Process by Which

question 2

Multiple Choice

Depreciation is a process by which

• A) replacement funds are accumulated for plant and equipment.
• B) the decline in market value of plant and equipment is determined and recorded.
• C) the cost of plant and equipment is allocated to expense over the time periods which benefit from the use of the asset.
• D) the difference between current market value and historical cost of plant and equipment.

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Definitions:

Talcott Parsons

An influential American sociologist known for his theories on social action, systems theory, and the role of values in social order.

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A concept in sociology and organizational theory indicating that organizations and societies mobilize resources and establish procedures to achieve specific goals.

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A concept in psychology and sociology that views human behavior as the result of interactions between individuals and their environments.

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An organized set of symbols, values, norms, and practices shared by a group that shapes their view of the world and their behavior within it.