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8_murik_8 [283]
3 years ago
7

Which of the following is not true regarding Depreciation? Group of answer choices Depreciation allocates the cost of a fixed as

set over its estimated life. Depreciation expense reflects the decrease in market value each year. Depreciation is an allocation not a valuation method. Depreciation expense does not measure changes in market value.
Business
2 answers:
Mariulka [41]3 years ago
8 0

Answer: Depreciation expense reflects the decrease in market value each year.

Explanation:

Depreciation is the decrease in the value of an asset due to the passage of time. Overtime, the value of machineries reduce as a result of usage. Depreciation is therefore the reduction in the value of assets. Depreciation is also the method used tin reallocating the cost of a tangible assets over its useful life span. Firms depreciate assets for accounting and tax purposes. The reduction in the value of an asset has am effect on the balance sheet of an entity.

The answer to the question is the second option. Depreciation does not have anything to do with the market value. Other options are correct except for the second option which states that depreciation expense reflects the decrease in market value each year.

goldfiish [28.3K]3 years ago
6 0

Answer:

The correct answer is letter "B": Depreciation expense reflects the decrease in market value each year.

Explanation:

In accounting, depreciation expense is a noncash expense that represents the cost of a company's fixed assets that are being used given a period. Depreciation expense is added to the net income amount in the Cash Flows Statement and is mainly calculated using the straight-line method.

Thus, <em>depreciation expense does not reflect the decrease in market value year after year.</em>

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Answer:

a) must accept market price for its physical capital inputs.

Explanation:

The price of gold in the commodity market is being influenced by market speculation.  Market speculation implies investors are trying to profit from the changing prices of gold.  When the market is active, the price of gold will be moving up and down depending on demand.

The current prices are high is a motivation to sell. For I'maGoldMiner to profit from the current high prices, it must continue with production. In the event the prices of physical capital inputs change, the company must accept the new prices.  The high selling prices will assist the company in absorbing any changes input costs. That way, the company will maximize on the current high prices.

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3 years ago
When conducting a research study attempting to understand what features were most important to automobile consumers, Gary's Rese
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A. Structured.

Explanation:

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3 years ago
How do we know how much to fix when selling a house?
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Kenny Lauren want to establish a nonprofit organization to help orphans find adoptive homes. They know that they will need a lar
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Explanation:

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Net present value is the correct answer.

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