MB6-702 · Question #56
Which three statements about value models are correct? Each correct answer presents a complete solution.
The correct answer is A. An unlimited number of value models can be assigned to an asset. B. A value model defines how an asset is depreciated. C. Value models track the financial value of a fixed asset over time. Value models track the financial value of a fixed asset over time (C) for various purposes, such as accounting depreciation (B), tax depreciation, revaluation, and disposal. Each value model represents an independent financial life cycle, and each fixed asset can have several…
Question
Which three statements about value models are correct? Each correct answer presents a complete solution.
Options
- AAn unlimited number of value models can be assigned to an asset.
- BA value model defines how an asset is depreciated.
- CValue models track the financial value of a fixed asset over time.
- DValue models define the number sequence to be used when creating a fixed asset.
- EAssigning a value model to a fixed asset is required.
How the community answered
(37 responses)- A76% (28)
- D8% (3)
- E16% (6)
Explanation
Value models track the financial value of a fixed asset over time (C) for various purposes, such as accounting depreciation (B), tax depreciation, revaluation, and disposal. Each value model represents an independent financial life cycle, and each fixed asset can have several value models assigned to it (A).
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