Quiz AC-11 - 12. Question: Business events are recorded in...

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12. Question: Business events are recorded in accounting records Your Answer: organized chronologically organized by the accounts affected. organized into discrete time periods all of the above. CORREC T Points Received: 1 of 1 Comments: 13. Question: From the four statements listed below, select the best statement which explains why accountants use the Accumulated Depreciation account for long-lived assets. Hint:Review the purpose of using the Accumulated Deprecation account. Your Answer: Accumulated depreciation is used primarily to increase expenses and therefore reduce taxable income for a company. ( Incorrect. It is correct to say that depreciation expense reduces a company's net income (as does any other expense), but this is not the primary purpose for using accumulated depreciation on a company's balance sheet. ) Only to please investors who want to know the true net worth of assets found on a company's balance sheet. ( Incorrect. Although investors look at accumulated depreciation as a way to measure the average age of a company's assets, the true net worth of the assets will not be known until such time as the assets are sold. It is at this
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This note was uploaded on 06/20/2010 for the course FINA 6266 taught by Professor Burt during the Spring '10 term at University of Arkansas for Medical Sciences.

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Quiz AC-11 - 12. Question: Business events are recorded in...

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