Finra Exam Series-7 Topic 4 Question 104 Discussion

Actual exam question for Finra's Series-7 exam

Question #: 104
Topic #: 4

[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 Rusty at Dec 09, 2024, 08:00 PM

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Jerry

2 days ago

B is the way to go! Depreciation is a crucial concept in financial accounting. It's like a magic trick for your equipment - making the value disappear over time!

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Viola

4 days ago

I agree with Toi, depreciation is deductions from gross income.

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Lavonda

6 days ago

Hmm, I'm not sure about this one. I was thinking maybe A, but now I'm leaning towards B. Gotta love those tricky accounting questions!

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Toi

12 days ago

I think the answer is B.

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Tammi

13 days ago

Definitely B. Depreciation is a method of allocating the cost of an asset over its useful life.

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Torie

2 days ago

I think B is the correct answer. Depreciation helps offset the lower value of equipment over time.

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Merilyn

17 days ago

I think B is the correct answer. Depreciation is a way to account for the decrease in value of equipment over time.

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Chau

9 days ago

Depreciation is important for accounting purposes.

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Julian

10 days ago

I agree, B is the correct answer. It's about offsetting lower value of equipment.

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