-Which method of depreciation considers that the asset has greater service potential in the earlier years a. Diminishing balance method b. Units of production method c. Straight line method d. Fixed depreciation method
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- The methods for depreciating assets are 1) straight-line depreciation; 2) declining balance depreciation (specifically double declining balance); and 3) units-of-production or units-of-activity or activity based depreciation. Is it possible that I can recieve help with descibing each method and comparing the different depreciation methods and its effect on net operating income?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.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
- Which depreciation method would result in the same depreciation expense amount regardless of the partial period cor Select one: a. Sum-of-the-years'-digits b. Declining-balance c. Units-of-production d. Straight-lineWhich depreciation method ignores residual value when computing the depreciable base of an asset? a. sum-of-the-year's-digits b. double-declining-balance c. composite depreciation d. group depreciationContrast the straight-line method and the units-of-activity method as to (a) Useful life, and (b) The pattern of periodic depreciation over useful life 2. Distinguish between revenue expenditures and capital expenditures during useful life. 3. What are natural resources, and what are their distinguishing characteristics? 4. What are the similarities and differences between the terms depreciation, depletion, and amortization? 5. Explain what depletion is and how it is computed.
- Statement 1: The cost of an asset, or other amount substituted for cost, less its residual value is called “depreciation”. Statement 2: And, “depreciation” on the other hand, is the systematic allocation of theamount of depreciation of an asset over its useful life. a. Statement 1 is correct b. Statement 2 is correct c. Both statements are correct d. Both statements are wrong1. Which of the statements is incorrect concerning the depreciation methods? a) Under the output method, the cost per unit of production is constant. b) The straight-line method is particularly appropriate where the asset is expected to decline in usefulness as a function of time and the expected use pattern of the asset is fairly constant over time. c) The sum of the years' digits method provides for a decreasing depreciation charge. d) First-year depreciation under the double declining balance method is computed as the depreciable amount multiplied by double the straight-line rate. e) None of the choices is incorrect 2. All of the following statements are true, except: a) Property acquired in exchange for shares or other securities of the enterprise should be recorded at its fair value or the fair value of the securities, whichever is more clearly evident b) When property is acquired in exchange for another, its cost is usually determined by reference to the fair value of the asset…Accumulated Depreciation a.is the same as Depreciation Expense b.is used to show the amount of cost expiration of natural resources c.is used to show the amount of cost expiration of intangibles d.is a contra asset account
- Which of the following is true? a.If using the units-of-output method, it is possible to depreciate more than the depreciable cost. b.If using the double-declining-balance method, the total amount of depreciation expense during the life of the asset will be the highest. 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.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 methodStatement 1: The cost of an asset, or other amount substituted for cost, less its residual value is called “depreciable amount”. Statement 2: And, “depreciation” on the other hand, is the systematic allocation of the amount of depreciation of an asset over its useful life. a. Statement 1 is correct b. Statement 2 is correct c. Both statements are correct d. Both statements are wrong
