Finra Exam Series-7 Topic 4 Question 104 Discussion

Actual exam question for Finra's Series-7 exam

Question #: 104
Topic #: 4

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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2 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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