____________is also known as Appraisal system of depreciation?
Correct answer: C. Inventory system
- A. Annuity system
- B. Survey system
- C. Inventory system
- D. Insurance
Explanation
The inventory system, also called the appraisal or revaluation system, determines depreciation by valuing the asset at the beginning and end of the period. The fall in value is treated as depreciation.
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About Accounting Principles
Accounting principles explain the rules used to record, classify and report business transactions. Coverage includes the accounting equation, double-entry system, accrual and cash bases, matching and prudence concepts, consistency, going concern, business entity, and the difference between capital and revenue items.
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