FSA

CFA Level I
#1

Which among the following statements is the least accurate in describing the concept of depreciation? A) Depreciation is the acquisition cost spread over the useful life of the asset. B) Depreciation is not a process of valuation. c) The straight line method of depreciation is related to the passage of time. D) Depreciation refers to the gradual conversion of an asset into expense.

#2

B this is a scary question. D also seems a valid choice. would go with D. if i remember defintion it says, dep is the process of allocation of the asset. so i guess its a valuation method.

#3

where the heck did this come from?

#4

B

#5

notice the 2 negative. least accurate, and then in choice B they say “not a valuation process” F**ING PISSED.

#6

I will wait few more minutes to post the answer…

#7

D

#8

pepp Wrote: ------------------------------------------------------- > notice the 2 negative. > > least accurate, > > and then in choice B they say “not a valuation > process” > > F**ING PISSED. oops i choose A simply because using DDB an asset can be depreciated more quickly than its useful life

#9

D

#10

Guys, I think we should go and revise the session related to depreciation. At first, I also got it wrong… anyway it is A.

#11

. what is the source of this question. this is ridiculous.

#12

pepp Wrote: ------------------------------------------------------- > . what is the source of this question. this is > ridiculous. stalla

#13

wtf how is it a???

#14

LOL! I feel a bit better now…I though I was the only one who got this question wrong :slight_smile:

#15

pretty good question

#16

this is an impossible question to answer. why is it A??? i dont get it. what’s the stalla rationale. i think they are F*ing with our minds.

#17

an asset can be depreciated more quickly than its useful life using accelerated depreciation so A is wrong i can’t find my damn bubble sheets

#18

A) Depreciation is the acquisition cost spread over the useful life of the asset. (its the rationale behind depreciation). D) Depreciation refers to the gradual conversion of an asset into expense. (it is wrong because you dont convert anything…assets are not converted into expenses, this is just the accounting method used for what its explained in A) At first, I aswered D as well

#19

wow has those “least likely” questions

#20

getterdone Wrote: ------------------------------------------------------- > wow has those “least likely” questions This type of questions completely fry my brain