Which of the Following Best Describes the Objective of Depreciation

question 97

Multiple Choice

Which of the following best describes the objective of depreciation?

• A)To allocate the cost of a tangible asset to the periods in which its use contributes to earning revenue.
• B)To estimate the remaining useful life of the asset.
• C)To report the asset on the balance sheet at the estimated amount for which the asset could be sold on the balance sheet date.
• D)To estimate the current market value of the asset.

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Definitions:

Federalism

A system of government in which power is divided between a central authority and constituent political units.

U.S. Constitution

The U.S. Constitution is the supreme law of the United States, establishing the framework for the federal government and the rights of the citizens.

Corporate Speech

Refers to the legal doctrine that extends certain protections of free speech to corporate entities, often related to political or marketing activities.

Political Speech

Speech that is used to support political candidates or referenda. Compared to other types of speech, it is given a high level of protection by the First Amendment.