The depreciation method which uses a depreciation rate that is a multiple of the straight-line rate is called:Multiple ChoiceUnits-of-production depreciation.Modified accelerated cost recovery system (MACRS) depreciation.Declining-balance depreciation.Book value depreciation.Amortization.

Name: The depreciation method which uses a depreciation rate that is a mult
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Description: The depreciation method which uses a depreciation rate that is a multiple of the straight-line rate is called:Multiple ChoiceUnits-of-production depreciation.Modified accelerated cost recovery system (MACRS) depreciation.Declining-balance depreciati

Solution: There are various methods of depreciation computation on plant assets. These include…

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Business

Accounting

epreciation method which uses a depreciation rate that is a multiple of the straight-line rate is called: Multiple Choice

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter18: Accounting For Long-term Assets

Section: Chapter Questions

Problem 4MC

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The method of depreciation which is also known as Accelerated depreciation method is a. Diminishing balance method b. Units of production method c. Double declining depreciation method d. Straight line method
Which of the following depreciation methods most closely approximates the method used to deplete the cost of natural resource? a. Straight-line method b. Double-declining-balance method c. Either the cost model or the revaluation model d. The recoverable amount model
Explain straight-line, units-of-production, and double-declining-balance depreciation. When is it appropriate to use each of these depreciation methods?
Contrast the effects of the straight-line, declining-balance, and activity-based methods on annual depreciation expense.
Which of the following statements is true regarding depreciation methods?a. The use of a declining balance method of depreciation will produce lower depreciation charges in the early years of an asset’s life compared to the straight-line depreciation method.b. Over the life of an asset, a declining balance depreciation method will recognize more depreciation expense relative to the straight-line method.c. The use of a declining balance method instead of the straight-line method will produce higher book values for an asset in the early years of the asset’s life.d. The use of a higher estimated life and a higher residual value will lower the annual amount of depreciation expense recognized on the income statement
The depreciation method that does not initially use the residual value in depreciation calculations is thea. straight-line method.b. units-of-production method.c. double-declining balance method.d. direct method.
The depreciation method used shall reflect the pattern in which the asset’s future economic benefits areexpected to be consumed by the entity. Which statement is incorrect regarding depreciation methods?a. Straight-line depreciation results in a constant charge over the useful life if the asset’s residual value does not change.b. The diminishing balance method results in a decreasing charge over the useful lifec. The units of production method results in a charge based on the expected use or outputd. A depreciation method that is based on revenue that is generated by an activity that includes the use of an asset is appropriate.
Please explain double-declining method depreciation. When is this the preferred method to figure depreciation?
Is residual value deductible when using accelerated method of depreciation>
Blueprint Connection: Depreciation Methods Depreciation is the process of allocating the cost of an asset to expense over the asset's estimated useful life. The amount depreciated is the cost of the asset less the asset's expected residual value. An accelerated depreciation method allocates larger amounts of depreciation expense to earlier periods of an asset’s life and smaller amounts of depreciation expense to later periods of an asset’s life. Straight-line depreciation allocates an equal amount of the asset’s cost to depreciation expense for each year of the asset’s useful life. Units-of-production depreciation is used primarily to depreciate machinery and allocates costs based on the actual use of the machine to produce product. While these methods allocate a different amount of depreciation expense to each year of an asset’s life, the total amount of depreciation expense recognized over the asset’s life is the same under either method. Select the depreciation method…
Which method of depreciation would result in a depreciation expense that is more if the asset is used more and a depreciation expense that is less if the asset is used less? Group of answer choices Double-declining balance There is no such method Units of production Straight-line
The depreciation method that can be most easily manipulated is the: Group of answer choices straight-line method weighted-average method double-declining method units-of-activity method Gross profit is calculated as: Group of answer choices Sales revenue –COGS COGA –COGS COGS-Sales revenue Sales revenue –Operating expenses