Reference no: EM132759484

Problem 1: Which of the following statements is incorrect

Option 1: The straight-line method is suitable for depreciating assets whose economic benefits are constant, over the life of the economy
depreciation costs are real costs even though the results of the allocation process

Option 2: Depreciation cost is a hypothetical cost because it is only an allocation process

Option 3: In the straight-line method, depreciation expense is a period cost (charged based on the period in which it is incurred)

Problem 2: Measurement of assets when they first occur using value

Option 1: boarding (agreed price)

Option 2: all answers are correct

Option 3: market value

Option 4: fair value