- 1 Marks
Question
In Container accounting, the difference between the cost and carrying amount of a container is known as …………………….
Answer
Depreciation
Explanation: In container accounting, the difference between the original cost of a container and its current carrying amount (book value) is termed depreciation. This represents the decrease in the container’s value over time due to wear and tear, age, or obsolescence. Depreciation is systematically allocated over the container’s useful life to reflect its consumption of economic benefits.
- Tags: Asset Valuation, Container Accounting, Depreciation
- Level: Level 1
- Topic: Accounting Concepts
- Series: MAY 2014
- Uploader: Theophilus