When Straight-Line Depreciation Is in Use,the Depreciation Rate of an Asset

question 59

Multiple Choice

When straight-line depreciation is in use,the depreciation rate of an asset is equal to:

• A)1 divided by the life of the asset.
• B)1 divided by the cost of the asset.
• C)The cost of the asset divided by the life of the asset.
• D)The cost of the asset less its salvage value divided by the life of the asset.

---

Definitions:

Restatement

A compilation that aims to clarify, organize, and simplify the law, often used as reference in legal reasoning and decisions.

Code

A system of principles or rules designed to regulate behavior or activity.

Condition Precedent

A legal term for an event or action that must occur or be completed before a contract becomes effective or before certain obligations are expected to be performed.

Insurance Policy

A contract between an individual or entity and an insurance company, outlining the terms for the insurance company to compensate the insured in the event of a loss.