Finra Exam Series-7 Topic 3 Question 94 Discussion

Actual exam question for Finra's Series-7 exam

Question #: 94
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 Marylin at Aug 04, 2024, 01:15 PM

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Izetta

3 months ago

D) Capitalized and amortized maintenance costs? That's like trying to polish a turd, if you ask me.

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Franchesca

3 months ago

A) No way, that's just tax shenanigans. I want the real scoop on depreciation, not some fancy accounting trick.

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Fletcher

3 months ago

It's not a tax credit, it's a way to account for the decrease in value of assets over time.

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Fletcher

3 months ago

Depreciation is deductions from gross income to offset lower value of equipment.

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Wilson

4 months ago

B) Definitely the right answer. I can't think of a better way to offset the declining value of my equipment.

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Mirta

2 months ago

D) capitalized an amortized maintenance costs

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Helene

2 months ago

C) return of principal from real estate investors

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Jenise

2 months ago

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

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Kattie

2 months ago

Yes, it's a way to account for the wear and tear on assets.

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Cathrine

3 months ago

A) tax credit available to investors in heavy equipment

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Suzan

3 months ago

I agree, depreciation is important for that.

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Heike

3 months ago

I think B is the correct answer. It helps offset the lower value of equipment.

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Audry

4 months ago

I believe it's B) as well, because depreciation reflects the wear and tear on assets.

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Albina

4 months ago

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

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Rebbeca

4 months ago

Depreciation? Sounds like something I'd rather not depreciate, if you know what I mean.

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Teri

3 months ago

I agree, depreciation is important to consider when evaluating the value of assets.

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Teri

3 months ago

Depreciation is deductions from gross income to offset lower value of equipment.

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Fernanda

4 months ago

I agree with Annmarie, depreciation is about reducing the value of assets over time.

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Annmarie

4 months ago

I think the answer is B) deductions from gross income to offset lower value of equipment.

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