Which of the following depreciation methods allocate the cost of the underlying asset evenly over the useful
Question:
Which of the following depreciation methods allocate the cost of the underlying asset evenly over the useful life of the asset:
a. double-declining-balance method
b. units-of-production method
c. straight-line method
d. lump-sum depreciation method
Step by Step Answer:
c St...View the full answer
Fundamental Accounting Principles Volume I
ISBN: 978-1260305821
16th Canadian edition
Authors: Kermit Larson, Tilly Jensen, Heidi Dieckmann
Related Video
In accounting terms, depreciation is defined as the reduction of the recorded cost of a fixed asset in a systematic manner until the value of the asset becomes zero or negligible. An example of fixed assets are buildings, furniture, office equipment, machinery, etc. The land is the only exception that cannot be depreciated as the value of land appreciates with time. Depreciation allows a portion of the cost of a fixed asset to be the revenue generated by the fixed asset. This is mandatory under the matching principle as revenues are recorded with their associated expenses in the accounting period when the asset is in use. This helps in getting a complete picture of the revenue
Students also viewed these Business questions
-
Which of the following depreciation methods allocates more depreciation in the early years of an assets life and less depreciation in later years: a. units-of-production method b....
-
A variety of depreciation methods are used to allocate the cost of an asset to all of the accounting periods benefited by the use of the asset. Your client has just purchased a piece of equipment for...
-
Multiple Choice Questions 1. A method that excludes residual value from the depreciation base for the calculation of depreciation is: a. Straight- line b. Sum- of- the- years- digits c. Double-...
-
1 This question is about the Nature of Programming Languages. a) Explain the essential characteristics and features for each of the following categories of programming language. Provide sample code...
-
Describe the AM A approach to regulatory capital, and explain why it should be superior to the basic indicator approach and the standardized approach.
-
Discuss the different methods that managers can use to effectively manage innovation in their organizations.
-
How are the cash flows originating from a company's financing activities identified?
-
Consider the unadjusted trial balance of Spateness, Inc., at December 31, 2016, and the related month-end adjustment data. Adjustment data at December 31, 2016: a. Accrued service revenue at December...
-
Calculate the missing values and express your answers rounded to two decimal places. Cost Amount of Markup Selling Price Rate of Markup Rate of Markup on Cost on Selling Price a. $300.00 25.00% % b....
-
Ityesi, Inc., a manufacturer of custom packaging products headquartered in Canada, wants to value a project in the United Kingdom. Ityesi is considering introducing a new line of packaging in the...
-
What is the difference in profit between a repairs and maintenance expense and a betterment, and how is each recorded?
-
On January 2, 2018, Archer Company, a skateboard manufacturer, installed a computerized machine in its factory at a cost of $150,200. The machine?s useful life was estimated at four years or a total...
-
An employee from that organization announced the change in date for the event. Your Task. Revise the above sentence to improve clarity and precision. Use your imagination to add appropriate words.
-
Listed below are errors that the application of audit procedures may detect related to inventory. For each error identify the broad category of assertion involved. a. Some inventory items are out on...
-
In an initial engagement the CPA usually applies the auditing procedure of reviewing the client's federal income tax returns for prior years. What are the general purposes or objectives of this...
-
"As increasing numbers of lawsuits against auditors are demonstrating, the public accountant incurs very real risks as auditor of a corporation. In his or her own interest, the auditor should be more...
-
The greater the power, the less likely we are to make a __________________ error. In Exercises 35, fill in each blank with the appropriate word or phrase.
-
If the sample size is increased, the power will ____________________. In Exercises 35, fill in each blank with the appropriate word or phrase.
-
Briefly describe a real-life situation in which the median is preferable to the mean. Give hypothetical numbers for the mean and median in your explanation. Be original! (Dont use home prices or...
-
In Exercises 1-2, rewrite each verbal statement as an equation. Then decide whether the statement is true or false. Justify your answer. 1. The logarithm of the difference of two numbers is equal to...
-
Using the data in BE8-11, indicate (1) The items that will result in an adjustment to the depositors records and (2) Why the other items do not require adjustment.
-
Using the data in BE8-11, indicate (1) The items that will result in an adjustment to the depositors records and (2) Why the other items do not require adjustment.
-
Using the data in BE8-11, indicate (1) The items that will result in an adjustment to the depositors records and (2) Why the other items do not require adjustment.
-
The annual rainfall in a particular area of the country is normally distributed, with mean 100 cm and standard deviation 20 cm. A drought is said to occur after a year in which the annual rainfall...
-
Revenue $525.000 Sales Returns $13,900 Sales Discounts $12.400 Net Sales $498.700 Cost of Goods Sold $79.500 Gross Profit Gross Profit Margin % 84.0696
-
Start by entering the total units sold in B1. You get this information from the Inventory Sheet by summing the Units Soldcolumn. Hint: Don't do anything fancy with naming ranges or creating tables....
Study smarter with the SolutionInn App