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 asset.
-
Straight-line depreciation is the most common method of depreciation used in the U.S. for financial reporting, but is not commonly used for taxes.
Homework Answers
Ans : This statement is correct about SLM of depreciation. Straight line depreciation is an approved method to allocate the cost of an asset to expenses and it serves as a measure of the physical decline in the asset.
Add Answer to:
Which of the following statements about straight-line
depreciation is correct?
Multiple Choice
The straight line method...
Which of the following is correct about the comparison of straight-line and accelerated depreciation method? a....
Which of the following is correct about the comparison of straight-line and accelerated depreciation method? a. Straight-line depreciation method accelerates expense recognition in early years of an asset's life. b. Aggressive managers tend to use straight-line depreciation method in early years of an asset's life. c. Accelerated depreciation method accelerates revenue recognition in early years of an asset's life. d. Accelerated depreciation method increases current earnings in early years of an asset's life. e. Both C and D.
How is depreciation allocated when using the straight-line method? Depreciation expense is allocated in proportion to...
How is depreciation allocated when using the straight-line method? Depreciation expense is allocated in proportion to an asset's use in operations A constant percentage of an asset's book value as of the beginning of each period is allocated to depreciation expense • An equal amount of depreciation expense is allocated each period of an asset's useful life Salvage value is the expected net recovery when the asset is sold or removed from service. • True False
Blueprint Connection: Depreciation Methods Depreciation is the process of allocating the cost of an asset to...
Blueprint Connection: Depreciation Methods Depreciation is the process of allocating the cost of an asset to expense over the asset's estimated useful life. The amount depreciated is the cost of the asset less the asset's expected residual value. depreciation method allocates larger amounts of depreciation expense to earlier periods of an asset's life and smaller amounts of depreciation expense to later periods of an asset's life. depreciation allocates an equal amount of the asset's cost to depreciation expense for each...
Which of the following statements is false? Once you select a depreciation method, then you must...
Which of the following statements is false? Once you select a depreciation method, then you must use this method for all depreciable assets. The balance in the accumulated depreciation account will be the same at the end of an asset's useful life under all the methods allowed under GAAP. The book value at the end of an asset's useful life will be the same under all the depreciation methods allowed under GAAP. The annual depreciation expense and year-end book values...
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...
$19,000 $15,000. $4,000. $34,000. D Question 10 If the straight-line method of depreciation of an asset...
$19,000 $15,000. $4,000. $34,000. D Question 10 If the straight-line method of depreciation of an asset with a 5-year life expectancy and no salvage valu percentage of cost that is recognized as depreciation expense for the first two years of the asset's lifell 25% and 25%. 40% and 20%. 40% and 40%. 20% and 20%.
Answer the following questions concerning the choice of depreciation method for an asset that has a...
Answer the following questions concerning the choice of depreciation method for an asset that has a 10-year life. Select your answer by clicking in the drop down box to the right of each question. Which depreciation method will show the highest amount of income tax expense in the first year of owning the asset? [ Choose ] double-declining balance or straight-line Which depreciation method will show the higher book value of the asset...
Answer the following questions concerning the choice of depreciation method for an asset that has a...
Answer the following questions concerning the choice of depreciation method for an asset that has a 10-year life, straight line or double declining balance. Which depreciation method will show the highest amount of income tax expense in the first year of owning the asset? Which depreciation method will show the higher book value of the asset at the end of the first year? Which depreciation method would most likely result in a gain if the asset was sold at the...
Answer the following questions concerning the choice of depreciation method for an asset that has a...
Answer the following questions concerning the choice of depreciation method for an asset that has a 10-year life. Select your answer by clicking in the drop down box to the right of each question. Straight line or doubling declining balance Which depreciation method will show the highest amount of income tax expense in the first year of owning the asset? Which depreciation method will show the higher book value of the asset at the end of the first year? Which...
The most widely used depreciation method for financial statements is 1) straight-line 2) MACRS O3) declining-balance...
The most widely used depreciation method for financial statements is 1) straight-line 2) MACRS O3) declining-balance O4) units-of-production 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. True O False
How is depreciation allocated when using the straight-line method? Depreciation expense is allocated in proportion to an asset's use in operations A constant percentage of an asset's book value as of the beginning of each period is allocated to depreciation expense • An equal amount of depreciation expense is allocated each period of an asset's useful life Salvage value is the expected net recovery when the asset is sold or removed from service. • True False
Blueprint Connection: Depreciation Methods Depreciation is the process of allocating the cost of an asset to expense over the asset's estimated useful life. The amount depreciated is the cost of the asset less the asset's expected residual value. depreciation method allocates larger amounts of depreciation expense to earlier periods of an asset's life and smaller amounts of depreciation expense to later periods of an asset's life. depreciation allocates an equal amount of the asset's cost to depreciation expense for each...
Which of the following statements is false? Once you select a depreciation method, then you must use this method for all depreciable assets. The balance in the accumulated depreciation account will be the same at the end of an asset's useful life under all the methods allowed under GAAP. The book value at the end of an asset's useful life will be the same under all the depreciation methods allowed under GAAP. The annual depreciation expense and year-end book values...
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...
$19,000 $15,000. $4,000. $34,000. D Question 10 If the straight-line method of depreciation of an asset with a 5-year life expectancy and no salvage valu percentage of cost that is recognized as depreciation expense for the first two years of the asset's lifell 25% and 25%. 40% and 20%. 40% and 40%. 20% and 20%.
The most widely used depreciation method for financial statements is 1) straight-line 2) MACRS O3) declining-balance O4) units-of-production 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. True O False
Most questions answered within 3 hours.
-
The denaturation of proteins can be described by the
equilibrium
F⇌U
where F and U represent...
asked 20 minutes ago -
Please answer what the maximum and minimum force is, and the
angle on the ion is...
asked 22 minutes ago -
implement a program that reads a number of rows and a symbol.
The program will draw...
asked 28 minutes ago -
Assume that when adults with smartphones are randomly selected,
45% use them in meetings or classes....
asked 32 minutes ago -
Determine the number of formula units of
Na2SO4 and moles of oxygen contained in 8.11
moles...
asked 41 minutes ago -
Explain in steps on the following code
What would be the output when executed
using System;...
asked 49 minutes ago -
Given the information in the table, which of the following
statements is CORRECT?
Stock A
Stock...
asked 47 minutes ago -
Write MARIE assembly language programs that do the following:
Write a program that inputs an integer...
asked 51 minutes ago -
Explain an understanding of services and protocols.
Explain the job of DNS.
Explain the three email...
asked 1 hour ago -
(As soon as possible) Balance each of the following equations
according to the half-reaction method:
H2O2(aq)...
asked 1 hour ago -
A thin rod with a mass of 3.5kg and a length L=1.5 m is oriented
horizontally....
asked 1 hour ago -
Inheritance pattern in BRCA 1
Describe the inheritance pattern of BRCA 1 Is it recessive or...
asked 1 hour ago