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  • Question
  • Depreciation is a process of


  • Options
  • A. Allocation
  • B. Valuation
  • C. Both A & B
  • D. Appropriation

  • Correct Answer
  • Allocation 

    Explanation

    Depreciation is a process of cost allocation, not valuation. In accounting, the term depreciation refers to the allocation of cost of a tangible asset to expense to the periods in which the asset is expected to be used to obtain the economic benefit.

     

    In brief, Depreciation is fall in the value of assets due to wear and tear over a period of time, it is a loss.

  • Tags: AIEEE, Bank Exams, CAT, Analyst, Bank Clerk, Bank PO

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    • 1. Accounts Receivable financing is based on
    • Discuss
    • 2. Which of the following is not true about enterprise systems?

    • Options
    • A. Enterprise software is expressly built to allow companies to mimic their unique business practices.
    • B. Enterprise software includes analytical tools to evaluate overall organizational performance.
    • C. Enterprise system data have standardized definitions and formats that are accepted by the entire organization.
    • D. Enterprise systems help firms respond rapidly to customer requests for information or products.
    • Discuss
    • 3. Who buys Municipal bonds?
    • Discuss
    • 4. On a bank reconciliation, deposits in transit are

    • Options
    • A. added to the book balance
    • B. added to the bank balance
    • C. deducted from the book balance
    • D. None of the above
    • Discuss
    • 5. How important does accounts receivable useful for small business and why?
    • Discuss
    • 6. Unearned revenue is classified as

    • Options
    • A. Liability
    • B. Owner's equity
    • C. Asset
    • D. Income
    • Discuss
    • 7. The APC is calculated as

    • Options
    • A. consumption/income
    • B. change in income/change in consumption
    • C. income/consumption
    • D. change in consumption/change in income
    • Discuss
    • 8. Is accounts receivable an asset or liability?
    • Discuss
    • 9. Which of the following best describes term life insurance?

    • Options
    • A. The insured pays a premium for a specified number of years.
    • B. The insured is covered during his or her entire lifetime.
    • C. The insured pays the premium until his or her death.
    • D. The insured can borrow or collect the cash value of the policy.
    • Discuss
    • 10. The principle of diversification tells us that

    • Options
    • A. spreading an investment across many diverse assets will eliminate some of the total risk
    • B. concentrating an investment in two or three large stocks will eliminate all of the unsystematic risk
    • C. spreading an investment across five diverse companies will not lower the total risk
    • D. concentrating an investment in three companies all within the same industry will greatly reduce the systematic risk
    • Discuss


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