To measure depreciation, which of the following must be known?
A) market value of asset.
B) fixed asset turnover
C) cost of asset.
D) the amount of cash to replace fixed asset

Question

Quizplus · Accepted Answer

Depreciation is calculated based on the cost of the asset, not its market value or the amount of cash needed to replace it. Fixed asset turnover is a different concept related to how efficiently a company uses its fixed assets to generate revenue.

To Measure Depreciation, Which of the Following Must Be Known