Expense Items Are Depreciated Over Many Years, While Capital Items

question 98

True/False

Expense items are depreciated over many years, while capital items are charged off as they are used-usually in the year of purchase.

---

Definitions:

Settle

Completing a financial transaction by exchanging the payment of instruments between parties involved.

Discounting

The process of determining the present value of a payment or a stream of payments that is to be received in the future.

Opposite

In the context of numbers, it refers to the additive inverse of a number, which when added to the original number, results in zero.

Compounded Quarterly

A method where interest is calculated and added to the principal balance four times a year, affecting the total interest accrued over time.