Depreciation: Attributes and Analysis | CFA® Level 1 Exam Prep

Attributes of Depreciation

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All of the following are attributes of depreciation except

A. depreciation stays on the balance sheet as long as the asset is owned by the corporation.

B. depreciation provides funds for replacement of an asset.

C. depreciation is allocation of the cost of an asset over its useful life.

D. the purpose of depreciation is to charge against operations, by means of allocation, the cost of an asset.

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A. B. C. D.

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