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NEW QUESTION: 1
An organization has a policy of charging depreciation based on the usage of the fixed asset in a fiscal year.
You need to configure depreciation according to this policy.
Which depreciation method should you use?
A. Factor
B. Reducing balance
C. Straight line service life
D. Consumption
Answer: D
Explanation:
If you set up a depreciation profile for fixed assets and you select Consumption in the Method field in the Depreciation
profiles form, the fixed assets that are assigned to this depreciation profile are based on the usage of those fixed
assets.
Reference: About consumption depreciation [AX 2012]
Incorrect:
Not A: When you set up a fixed asset depreciation profile and select Straight line service life in the Method field in the
Depreciation profiles form, the assets that have this depreciation profile assigned to them are depreciated based on
the total service life of the asset. This generally is the same depreciation amount in each depreciation period.
Not B: When you set up a fixed asset depreciation profile and select Reducing balance in the Method field in the
Depreciation profiles form, the assets that have this depreciation profile assigned to them are depreciated by the
same percentage in each depreciation period.
Not C: Factors are the percentages that are used to depreciate assets. When you set up a fixed asset depreciation
profile and select Factor in the Method field in the Depreciation profiles form, you can set up progressive, digressive,
or straight line depreciation:
If you select progressive depreciation, the amount of depreciation increases with each depreciation period.
If you select digressive depreciation, the amount of depreciation per period decreases over time.
If you select straight line depreciation, the depreciation is the same in each period.

NEW QUESTION: 2

A. Option D
B. Option C
C. Option B
D. Option A
Answer: D

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