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:

Fertilization

The union of male and female gametes to form a zygote, initiating the development of a new individual organism.

Temporal Isolation

A mechanism that prevents species from mating because they are active at different times of the day, year, or mating seasons.

Behavioral Isolation

A form of reproductive isolation in which two populations develop differences in mating rituals or behaviors that prevent them from breeding with each other.

Reproductive Isolating Mechanisms

The reproductive barriers that prevent a species from interbreeding with another species; as a result, each species’ gene pool is isolated from those of other species. See prezygotic barrier and postzygotic barrier.