Reference no: EM132627454

Problem 1: Which statement relating to depreciation is true?

Select one:

a. Accumulated depreciation represents the amount of an asset's cost that has been transferred to depreciation expense to date.
b. Depreciation represents cash that can be used to replace assets when they wear out.
c. Accumulated depreciation is a contra-expense account.
d. The cash account is affected by charging

Problem 1: According to IAS 16/AASB 116, how many of the following are factors contributing to the decline in an asset's future economic benefits?

1. Commercial obsolescence
2. Technical obsolescence
3. Wear and tear
4. Inflation

Select one:

a. 4

b. 3

c. 2

d. 1