The Carrying Amount of a Depreciable, Non-Current Asset Is Its

question 45

Multiple Choice

The carrying amount of a depreciable, non-current asset is its:

• A) historic cost.
• B) net realisable value.
• C) cost less residual amount.
• D) cost or revalued amount less accumulated depreciation.

---

Definitions:

Equivalent Units

A concept in cost accounting used to express a quantity of partially completed goods in terms of fully completed units.

Physical Flow

The actual movement of goods or materials through a production process, from receipt of raw materials to the delivery of final products.

Work In Process

Items that are in the middle of the production process but not yet finished goods.

Physical Units

A measure of product expressed in terms of tangible units, such as pieces or gallons, rather than in monetary value.