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Subject - Accounting:

Financial Statement Analysis

MCQ - 292-294

Question:

Which of the following statements best describes the nature of depreciation?

  1. Regular reduction of asset value to correspond to the decline in market value as the asset ages
  2. A process of correlating the book value of an asset with its gradual decline in physical efficiency
  3. Allocation of the cost in a manner that will ensure that plant and equipment items are not carried on the balance sheet at amounts in excess of net realizable value
  4. A process of correlating the book value of an asset with its gradual decline in physical efficiency

Correct Answer: D

Explanation:

Not Required

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355 MCQ for effective preparation of the test of Financial Statement Analysis of Accounting section.

Read the MCQ statement: Which of the following statements best describes the nature of depreciation? , keenly and apply the method you have learn through the video lessons for Financial Statement Analysis to give the answer. Record your answer and check its correct answer and video explanation for MCQ No. 292-294.

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Solve the question for MCQ No. and decide which option (A through D/E) is the best choice to answer the MCQ, then click/tap the blue button to view the correct answer and it explanation.

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