Which of the Following Statements Relating to the Composite-Rate Depreciation

question 28

Multiple Choice

Which of the following statements relating to the composite-rate depreciation approach is not correct?

• A) Composite-rate depreciation always uses the straight-line method of depreciation.
• B) It is often used in practice by business entities with many similar assets in the one class.
• C) A single average depreciation rate is applied to the average of the beginning and ending balances of a functional group of assets.
• D) No gain or loss is recognised on the disposal of individual assets within the composite group.

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Definitions:

Kouzes And Posner

A framework of leadership proposed by James Kouzes and Barry Posner that emphasizes five fundamental practices leaders engage in to be effective: model the way, inspire a shared vision, challenge the process, enable others to act, and encourage the heart.

Extraordinary Things

Refer to achievements, objects, or events that are remarkable, exceptional, or surpass the ordinary.

Valuable Rewards

Rewards considered to have significant worth or importance to the recipient, often used to motivate or acknowledge achievements.

Inspire A Shared Vision

It involves leaders creating and conveying a compelling future perspective, motivating others to jointly pursue this vision.