Asked by
Marola Villacis
on Nov 13, 2024
Verified
Which of the following is true?
A) If using the double-declining-balance method, the total amount of depreciation expense during the life of the asset will be the highest.
B) If using the units-of-activity method, it is possible to depreciate more than the depreciable cost.
C) If using the straight-line method, the amount of depreciation expense during the first year is higher than that of the double-declining-balance.
D) Regardless of the depreciation method, the amount of total depreciation expense during the life of the asset will be the same.
Double-Declining-Balance
A method of accelerated depreciation which doubles the normal depreciation rate, reducing the value of an asset more quickly.
Depreciation Expense
Systematically spreading the expense of a physical asset over its duration of utility.
Units-of-Activity Method
A depreciation method where the expense is based on the number of units produced or the use of the asset, rather than the passage of time.
- Become adept at figuring depreciation amounts through a range of methods and discern the criteria that affect method determination.
Verified Answer
CW
Learning Objectives
- Become adept at figuring depreciation amounts through a range of methods and discern the criteria that affect method determination.