4. What two main factors or compelling forces may bring about inadequacy?
5. Name and discuss each of the forces of internal origin which may bring about inadequacy. Those of external origin.
6. Discuss obsolescence as a cause of functional depreciation.
7. Do the courts recognize obsolescence as a factor of depreciation?
8. Name the various items comprising contingent depreciation.
9. When must provision be made for the depreciation of intangible property, or rights?
10. What constitutes the effective depreciation for any given asset?
Chapter VIII
1. State the real purpose of the depreciation charge as viewed first from the standpoint of the balance sheet, and second from that of the profit and loss statement.
2. Among what items of expense do accountants include depreciation charges?