Where the Replacement Cost of a Fixed Asset Rises Year

question 4

Multiple Choice

Where the replacement cost of a fixed asset rises year on year there will be a need to increase the accumulated depreciation.This should be offset by a charge to;

• A)the P & L account.
• B)the holding gain reserve.
• C)a prior year adjustment to the P & L.
• D)a separate reserve.

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Definitions:

Ecological Term

Refers to concepts and vocabulary associated with the branch of biology that studies the interactions between organisms and their environment.

Birth Rate

A statistical measure representing the number of live births per 1,000 people in a population per year.

Death Rate

The ratio of deaths to the population of a particular area during a certain time frame, often expressed per 1000 individuals per year.

Ecological Term

A concept or phrase used to describe an aspect of ecology, the branch of biology that studies the interactions among organisms and their environment.