Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

7. Receivables and Investments

Introduction to Investments in Securities

Financial Accounting

7. Receivables and Investments

Introduction to Investments in Securities

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Multiple Choice

An appraiser determining the accrued depreciation of a property is using which approach to value?

Sales comparison approach

Income approach

Market approach

Cost approach

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Verified step by step guidance

Understand the concept of accrued depreciation: Accrued depreciation refers to the loss in value of a property due to physical wear and tear, functional obsolescence, or external factors over time.

Learn about the cost approach: The cost approach is a valuation method that estimates the value of a property by determining the cost to replace or reproduce the property, minus accrued depreciation, plus the value of the land.

Recognize why the cost approach is used for accrued depreciation: This method explicitly accounts for depreciation by subtracting it from the replacement or reproduction cost, making it the most suitable approach for determining accrued depreciation.

Compare the cost approach to other valuation methods: The sales comparison approach and income approach focus on market data and income generation, respectively, and do not directly calculate depreciation as part of their process.

Conclude that the cost approach is the correct method for determining accrued depreciation, as it directly incorporates depreciation into the valuation calculation.