Which of the Following Is NOT a Disadvantage of Deprival

question 5

Multiple Choice

Which of the following is NOT a disadvantage of deprival cost accounting?

• A)it is more subjective than replacement cost accounting.
• B)it fails to concentrate attention on long run attention on long run effectiveness.
• C)it fails to give information about the internal usefulness of assets.
• D)it is less realistic than replacement cost.

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Definitions:

Disposal

The act of getting rid of an asset through sale, trade, abandonment, or other methods, often resulting in the recognition of a gain or loss for accounting purposes.

Book Value

Book value is the net value of a company's assets as recorded on its balance sheet, often contrasted with market or actual value.

Annual Report

A comprehensive document detailing a company's activities and financial performance throughout the preceding year.

Units-Of-Output Depreciation

A depreciation method where the expense is based on the number of units produced or the machine's output during the period.