Let's suppose that you are a senior management member in a firm and you are trying to explain and provide a definition about the concept of depreciation in a Board of Directors meeting. Which of the following statements would you use to define depreciation? Please select only the right answer. O a. Depreciation is a cash expense which shows the gradual allocation of the purchase price of the non-current asset into the Statement of financial position, to match the use of the non- current asset with the revenues it helps to generate. O b. Depreciation is a non-cash expense which shows the gradual allocation of the purchase price of the non-current asset into the Income Statement, to match the use of the non-current asset with the revenues it helps to generate. O c. Depreciation is an amount of money the business safeguards every year in order to replace its non-current assets. O d. Depreciation is a way of showing how non-current assets lose value over time.
Let's suppose that you are a senior management member in a firm and you are trying to explain and provide a definition about the concept of depreciation in a Board of Directors meeting. Which of the following statements would you use to define depreciation? Please select only the right answer. O a. Depreciation is a cash expense which shows the gradual allocation of the purchase price of the non-current asset into the Statement of financial position, to match the use of the non- current asset with the revenues it helps to generate. O b. Depreciation is a non-cash expense which shows the gradual allocation of the purchase price of the non-current asset into the Income Statement, to match the use of the non-current asset with the revenues it helps to generate. O c. Depreciation is an amount of money the business safeguards every year in order to replace its non-current assets. O d. Depreciation is a way of showing how non-current assets lose value over time.
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter7: Operating Assets
Section: Chapter Questions
Problem 12MCQ: Which of the following statements is true? a. The fixed asset turnover ratio assists managers in...
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Please do not rely too much on chatgpt, because its answer may be wrong. Please consider it carefully and give your own answer. You can borrow ideas from gpt, but please do not believe its answer.Very very grateful!Please do not rely too much on chatgpt, because its answer may be wrong. Please consider it carefully and give your own answer. You can borrow
ideas from gpt, but please do not believe its answer.Very very grateful!
Transcribed Image Text:Let's suppose that you are a senior management member in a firm and you are trying to explain and
provide a definition about the concept of depreciation in a Board of Directors meeting. Which of the
following statements would you use to define depreciation? Please select only the right answer.
O a. Depreciation is a cash expense which shows the gradual allocation of the purchase price of
the non-current asset into the Statement of financial position, to match the use of the non-
current asset with the revenues it helps to generate.
O b. Depreciation is a non-cash expense which shows the gradual allocation of the purchase price
of the non-current asset into the Income Statement, to match the use of the non-current
asset with the revenues it helps to generate.
O c. Depreciation is an amount of money the business safeguards every year in order to replace
its non-current assets.
O d. Depreciation is a way of showing how non-current assets lose value over time.
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