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- Which of the following methods applies a declining depreciation rate each period to an asset's constant value? a.Double-declining-balance methodb.Straight-line methodc.Sum-of-the-years'-digits methodd.Units-of-production methodUnder which method of depreciation the amount of depreciation every year remains the same a. Diminishing balance method b. Double declining depreciation method c. Units of production method d. Straight line methodWhich method of deprecation results in a lower amount for depreciation each year? ⒸA. Units of production B. Fixed instalment OC. Diminishing balance OD. Straight-line Previous page
- A method that excludes residual value from the depreciation base for the calculation of depreciation is: a. straight-lineb. sum-of-the-years'-digitsc. double-declining-balanced. activityThe straight-line depreciation method and the double-declining-balance depreciation method: Group of answer choices Produce the same depreciation expense each year. Produce the same total depreciation over an asset's useful life. Produce the same book value each year. Are the only acceptable methods for calculating depreciation expense.In a written down value method, the amount of depreciation _________________. a. Increases year after year b. Will be the same as book value c. Reduces year after year d. Remains the same for all the years
- 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. . None of the choices is incorrectWhich 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.Which of the following statement best describes depreciation? a. It is a means of spreading the payment for non-current assets over a period of years b. It is a decline in the market value of assets c. It is a means of spreading the cost of non-current assets over the estimated useful life d. It is a means of estimating the amount of money needed to replace the assets
- 46. Evaluate the following statements: S1. In the sum-of-the-years'-digits method, residual value is not used in the computations of depreciation expense. S2. Straight-line depreciation assumes equal usefulness in each time period, and the periodic charge is not affected by asset productivity or efficiency variations. S3. The residual value of an asset is deducted from the depreciable base when calculating double-declining-balance depreciation. a. True, False, True b. False, True, False c. False, False, True d. False, False, False e. True, True, False f. True, True, True g. False, True, TrueWhich of the following depreciation methods initially ignores salvage value in its calculation? a.Declining-balanceb.Sum-of-the-years'-digitsc.Straight-lined.Units-of-productionActon, Inc., uses the double-declining-balance method for depreciation on itscomputers. Which item is not needed to compute depreciation for the first year?a. Estimated residual valueb. Expected useful life in yearsc. Original costd. All the items listed are needed.