Which of the Following Is an Example of Depreciation

question 64

Multiple Choice

Which of the following is an example of depreciation?

• A)falling stock prices
• B)the retirement of several employees
• C)computers becoming obsolete
• D)All of the above are examples of depreciation.

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Definitions:

Simple Rate

Simple rate often refers to the straightforward, non-compounded percentage in various financial calculations, such as interest rates.

Salvage Value

The anticipated market price of an asset at the conclusion of its effective life.

Operating Costs

Expenses associated with the day-to-day functions of a business, excluding costs related to the production of goods.

Useful Life

The estimated time period that an asset is expected to be operational and economically useful to the owner.