Which Statement Relating to the Composite-Rate Depreciation Approach Is Not

question 27

Multiple Choice

Which statement relating to the composite-rate depreciation approach is not true?

• A) It is only used for items valued at less than $1000 each.
• B) A single depreciation rate is applied to the average cost of a functional group of assets.
• C) The composite rate is applied to the average of the beginning and ending balances in the asset account for the year.
• D) It is often used in practice by business entities with many similar assets in the one class.

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Definitions:

Extrinsic Rewards

Benefits given by an external source, such as money, grades, or praise, which are used to motivate certain behaviors.

Intrinsic Enjoy

Finding inherent satisfaction and pleasure in an activity, regardless of external rewards or outcomes.

Self-Handicapping

Self-handicapping is a strategy where individuals create obstacles for themselves as an excuse for potential failure, protecting their self-esteem.

Self-Enhancement Motive

The desire to learn favorable or flattering things about the self.