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Statement 1: The cost of an asset, or other amount substituted for cost, less its residual value is called “depreciable amount”. Statement 2: And, “depreciation” on the other hand, is the systematic allocation of the       amount of depreciation of an asset over its useful life. Statement 1 is correct Statement 2 is correct Both statements are correct Both statements are wrong

Statement 1: The cost of an asset, or other amount substituted for cost, less its residual value is called “depreciable amount”. Statement 2: And, “depreciation” on the other hand, is the systematic allocation of the       amount of depreciation of an asset over its useful life. Statement 1 is correct Statement 2 is correct Both statements are correct Both statements are wrong

Principles of Accounting Volume 1
Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter11: Long-term Assets
Section: Chapter Questions
Problem 13MC: Which of the following represents an event that is less routine when accounting for long-term...
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  1. Statement 1: The cost of an asset, or other amount substituted for cost, less its residual

value is called “depreciable amount”.

Statement 2: And, “depreciation” on the other hand, is the systematic allocation of the       amount of depreciation of an asset over its useful life.

  1. Statement 1 is correct
  2. Statement 2 is correct
  3. Both statements are correct
  4. Both statements are wrong
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