Finra Exam Series-7 Topic 3 Question 90 Discussion

Actual exam question for Finra's Series-7 exam

Question #: 90
Topic #: 3

[All Series-7 Questions]

Which of the following best describes depreciation?

Atax credit available to investors in heavy equipment

Bdeductions from gross income to offset lower value of equipment

Creturn of principal from real estate investors

Dcapitalized an amortized maintenance costs

Show Suggested Answer

Suggested Answer: B

deductions from gross income to offset lower value of equipment. Depreciation is the deduction of costs for capital assets as their value declines.

by Marguerita at Jun 21, 2024, 09:43 PM

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Barrett

7 months ago

Haha, C) return of principal from real estate investors - that's a good one! Depreciation is definitely not that. I'm gonna go with B, it just makes the most sense to me.

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Tonette

7 months ago

I agree, B does make the most sense. Depreciation is all about offsetting lower value of equipment.

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Tonette

7 months ago

B) deductions from gross income to offset lower value of equipment

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Truman

8 months ago

A) tax credit available to investors in heavy equipment? Really? I thought depreciation was more about accounting for an asset's value decrease. This is a tricky one!

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Idella

6 months ago

D) capitalized an amortized maintenance costs

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Idella

6 months ago

Yes, depreciation is about accounting for the decrease in value of assets over time.

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Idella

7 months ago

B) deductions from gross income to offset lower value of equipment

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Lucia

8 months ago

Hmm, I was leaning towards D) capitalized an amortized maintenance costs, but now I'm not so sure. Gotta read up more on depreciation.

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Brande

7 months ago

I believe it's A) tax credit available to investors in heavy equipment.

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Nickolas

7 months ago

I think it's B) deductions from gross income to offset lower value of equipment.

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Kayleigh

8 months ago

Actually, Magnolia, that sounds more like capitalization. Depreciation is definitely about recognizing the decrease in value of assets.

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Magnolia

8 months ago

I'm not sure, but I think it's D) capitalized an amortized maintenance costs.

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Luther

8 months ago

B) deductions from gross income to offset lower value of equipment - that's the one! Depreciation is all about recognizing the declining value of assets over time.

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