Purchase cost of assets over its useful life is classified as_________?
Correct answer: B. Depreciation
- A. Appreciation
- B. Depreciation
- C. Appreciated assets
- D. Appreciated liabilities
Explanation
Depreciation allocates the cost of a tangible asset over its useful life, rather than treating the entire purchase cost as one period's expense. Appreciation is an increase in value, which is the opposite concept.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? support@testustad.com
About Business Finance
Business finance explains how organisations plan, obtain and use money while balancing risk, return and liquidity. Topics include financial statements, time value of money, budgeting, working capital, capital structure, sources of finance, investment appraisal and cost of capital. Capital budgeting evaluates long-term projects, whereas working capital manages day-to-day operations.
Practise Business Finance
975 free Business Finance MCQs from Management Sciences, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Exams that ask Management Sciences questions like this
Management Sciences is on 2 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
More Business Finance questions
An information uses by investors for expecting future earnings is all recorded in__________?
Rate of return that an investment provides its investor is classified as__________?
Non cash revenues and non cash charges if it subtracted from net income is equal to___________?
In balance sheet, sum of retained earnings and common stock are considered as_____________?
Process of calculating future value of money from present value is classified as____________?
Number of shares outstanding if it is divided by net income for using to calculate___________?