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

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

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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Definition Video Definition Accounting method wherein the cost of a tangible asset is spread over the asset's useful life. Depreciation usually denotes how much of the asset's value has been used up and is usually considered an operating expense. Depreciation occurs through normal wear and tear, obsolescence, accidents, etc. Video

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Characteristics of Depreciation Methods Below is a common list of depreciation methods and characteristics related to depreciation. Depreciation Methods a. Straight-line depreciation method b. Declining balance depreciation method c. Units-of-production depreciation method when actual units produced increases over the life of the asset Characteristics 1. Results in depreciation expense that decreases over the life of the asset. 2. Results in depreciation expense that increases over the life of the asset. 3. Allocates the same amount of cost to each period of a depreciable assets life. 4. Calculated by multiplying a constant depreciation rate by depreciable cost. 5. Calculated by applying a constant depreciation rate to the assets book value at the beginning of the period. 6. Results in lowest income taxes in early years of the assets life. 7. Consistent with the matching principle. Required: Match one or more of the depreciation methods with each characteristic.
An accelerated depreciation method that takes more expense in the first few years of the assets life is ________. A. units-of-production depreciation B. double-declining-balance depreciation C. accumulated depreciation D. straight-line depreciation
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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.
Which of the following depreciation methods will result in the most depreciation expense over the life of an asset? Select one: a. Double-declining balance method b. All three methods will result in the same amount of depreciation expense. c. Units-of-production method d. Straight-line method e. Cannot be determined from the information given.
Explain straight-line, units-of-production, and double-declining-balance depreciation. When is it appropriate to use each of these depreciation methods?
One accelerated depreciation method is called fixed-percentage-of-declining-balance. Explain what is meant by the terms “fixed-percentage” and “declining-balance.” Forwhat purpose is this method most widely used?
Contrast the effects of the straight-line, declining-balance, and activity-based methods on annual depreciation expense.
Which one of the following methods charges depreciation at a rate double to the one used in straight line method? Select one: a. Straight line method b. Declining balance method c. None of the methods d. Units of activity method
Which method is used to compute depletion? a. Double-declining-balance method b. Straight-line method c. Depletion method d. Units-of-production method
Explain the concept of depreciation and different methods used to calculate and record it, including straight-line, declining balance, and units-of-production methods.
Depreciation expense under the invenroty system is a. Based on cost minus residual value b. Basically a FIFO approach to depreciable asset accounting c. The result of applying a depreciation rate to the original cost d. A measure of the change in the value of the depreciable asset