The most widely used depreciation method for financial statements is 1) straight-line 2) MACRS O3) declining-balance...

Question

Question

The most widely used depreciation method for financial statements is 1) straight-line 2) MACRS O3) declining-balance O4) unit

The method of depreciation that yields a depreciation charge that varies with the amount of asset usage is known as the units

business accounting

Add a comment Improve this question Transcribed image text

Answer 1

Answer #1

a.

The most widely used depreciation method for financial statement is straight line.

Correct option is (1)

Although all methods have their own importance but mostly corporation used straight line method.

b.

The method of depreciation that yields a depreciation charge that varies with the amount of asset usage is known as the units of production method.

The given statement is true.

Under units of production method, depreciation is charged on the basis of units produced.

kindly give a positive rating if you are satisfied with the solution. Please ask if you have any query related to the question, Thanks.

Add a comment

Answer 2

Similar Homework Help Questions

True or False Straight-line is the most widely used depreciation method in financial statements, and MACRS...

True or False Straight-line is the most widely used depreciation method in financial statements, and MACRS is the most widely used method in federal income tax returns.
QUESTION 1 The most widely used depreciation method is O straight-line O sum-of-the-years-digits O declining-balance units-of-production

QUESTION 1 The most widely used depreciation method is O straight-line O sum-of-the-years-digits O declining-balance units-of-production
Which of the following statements about straight-line depreciation is correct? Multiple Choice The straight line method...

Which of the following statements about straight-line depreciation is correct? Multiple Choice The straight line method of depreciation results in a straight-line increase of depreciation expense over the life of an asset. Straight-line depreciation is an approved method to allocate the cost of an asset to expense and it serves as a measure of the physical decline in the asset. When the straight-line method is used to compute depreciation, an asset's carrying value remains constant over the life of the...

The double-declining balance method is applied by (1) calculating the asset's straight-line depreciation rate, (2) doubling...

The double-declining balance method is applied by (1) calculating the asset's straight-line depreciation rate, (2) doubling it, (3) subtracting residual value from cost, and (4) multiplying the rate times the cost. * O True False
When an asset generates revenue evenly over time the appropriate depreciation method is: Straight-line Double declining...

When an asset generates revenue evenly over time the appropriate depreciation method is: Straight-line Double declining balance Units of production Some other method
Straight-Line Depreciation Rates Convert each of the following estimates of useful life to a straight-line depreciation...

Straight-Line Depreciation Rates Convert each of the following estimates of useful life to a straight-line depreciation rate, stated as a percentage, assuming that the residual value of the fixed asset is to be ignored: (a) 4 years, (b) 8 years, (c) 10 years, (d) 16 years, (e) 25 years, (f) 40 years, (g) 50 years. If required, round your answers to two decimal places. Years Percentage 4 years 8 years 10 years 16 years 25 years 40 years 50 years...

1. Total depreciation expense over 5 years will be more with the double-declining balance method than...

1. Total depreciation expense over 5 years will be more with the double-declining balance method than with straight line method. a. True b. False 2. Once a company selects the depreciation method they want to use, it must use the same method for all subsequent fixed asset acquisitions. a. True b. False 3. Mitchell's Motors purchased equipment for $72,000 on January 1, 2018. The equipment is expected to have a five-year life and a residual value of $6,000. Using the...
1. Identify for each of the three major methods of calculating depreciation (Straight-Line, Double Declining Balance,...

1. Identify for each of the three major methods of calculating depreciation (Straight-Line, Double Declining Balance, Units of Production), a company that would likely use that method. Why would that company choose that specific method?
For financial reporting, Clinton Poultry Farms has used the declining-balance method of depreciation for conveyor equipm...

For financial reporting, Clinton Poultry Farms has used the declining-balance method of depreciation for conveyor equipment acquired at the beginning of 2015 for $2,784,000. Its useful life was estimated to be six years with a $216,000 residual value. At the beginning of 2018, Clinton decides to change to the straight-line method. The effect of this change on depreciation for each year is as follows YEAR STRAIGHT-LINE DECLINING BALANCE DIFFERENCE 2015 428 928 500 2016 428 618 190 2017 428 413...

For financial reporting, Clinton Poultry Farms has used the declining-balance method of depreciation for conveyor equipment...

For financial reporting, Clinton Poultry Farms has used the declining-balance method of depreciation for conveyor equipment acquired at the beginning of 2018 for $3,000,000. Its useful life was estimated to be five years, with a $260,000 residual value. At the beginning of 2021, Clinton decides to change to the straight-line method. The effect of this change on depreciation for each year is as follows: ($ in thousands) Year Straight Line Declining Balance Difference 2018 $ 548 $ 1,200 $ 652...

The most widely used depreciation method for financial statements is 1) straight-line 2) MACRS O3) declining-balance...

Homework Answers

Add Answer to:
The most widely used depreciation method for financial statements is 1) straight-line 2) MACRS O3) declining-balance...

Post as a guest

Earn Coins

True or False Straight-line is the most widely used depreciation method in financial statements, and MACRS...

QUESTION 1 The most widely used depreciation method is O straight-line O sum-of-the-years-digits O declining-balance units-of-production

Which of the following statements about straight-line depreciation is correct? Multiple Choice The straight line method...

The double-declining balance method is applied by (1) calculating the asset's straight-line depreciation rate, (2) doubling...

When an asset generates revenue evenly over time the appropriate depreciation method is: Straight-line Double declining...

Straight-Line Depreciation Rates Convert each of the following estimates of useful life to a straight-line depreciation...

1. Total depreciation expense over 5 years will be more with the double-declining balance method than...

1. Identify for each of the three major methods of calculating depreciation (Straight-Line, Double Declining Balance,...

For financial reporting, Clinton Poultry Farms has used the declining-balance method of depreciation for conveyor equipm...

For financial reporting, Clinton Poultry Farms has used the declining-balance method of depreciation for conveyor equipment...

The most widely used depreciation method for financial statements is 1) straight-line 2) MACRS O3) declining-balance...

Homework Answers

Add Answer to: The most widely used depreciation method for financial statements is 1) straight-line 2) MACRS O3) declining-balance...

Post as a guest

Earn Coins

Add Answer to:
The most widely used depreciation method for financial statements is 1) straight-line 2) MACRS O3) declining-balance...