Which of the following depreciation methods allocates more depreciation in the early years of an assets life
Question:
Which of the following depreciation methods allocates more depreciation in the early years of an asset’s life and less depreciation in later years:
a. units-of-production method
b. double-declining-balance method
c. straight-line method
d. None of the above.
Step by Step Answer:
b Doub...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 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....
-
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-...
-
Hybrid Corporation began operations in 2018 and during that year purchased equity investments. It owns less than 20% of the voting shares for all companies whose stock it purchased. The year-end cost...
-
Contrast unicasting, multicasting, and broadcasting as techniques for delivering content across a computer network.
-
Assume that the opportunity cost of producing a pair of pants in the United States is 2 pounds of rice, while in China it is 5 pounds of rice. As a result, a. the United States has a comparative...
-
Discuss the ethical choices in the situations below. In each instance, describe the ethical dilemma, determine the alternative courses of action, and tell what you would do. 1. You are the payroll...
-
Refer to the data in Exercise 1025, regarding Canandaigua Container Company. Prepare journal entries to: In Exercise 1025, Canandaigua Container Company manufactures recyclable soft-drink cans. A...
-
Consider the following project for Hand Clapper, Inc. The company is considering a 4-year project to manufacture clap-command garage door openers. This project requires an initial investment of $16.0...
-
Allie has bought a new apple orchard. The orchard has a single file of trees, numbered from 1 to N. Each tree has a certail number of ripe apples. Allie has a rule she wants to follow. She wants to...
-
What accounting principle justifies charging the $75 cost of PPE immediately to an expense account?
-
1. Calculate and record depreciation for the year just ended April 30, 2021, for both the building and equipment. 2. Prepare the property, plant, and equipment section of the balance sheet at April...
-
The balance in the supplies account, before adjustment at the end of the year, is $5,175. Journalize the adjusting entry required if the amount of supplies on hand at the end of the year is $615.
-
Teal Mountain Inc. issues $5.0 million, 10-year, 8% bonds at 101, with interest payable on January 1. The straight-line method is used to amortize bond premium. (a) Your answer is partially correct....
-
A)Scarlet is a staff accountant for Skynet (Pty) Ltd and suspected that management might have done earning management by using creative accounting to improve company performance. This situation best...
-
A). Sun will be starting a 5-year training program in 23 months' time. His mother, Moon, has promised him a living allowance of $167.2 per month to help support him during this time. If the interest...
-
Identify the primary purposes of the General Standards Rule, the Compliance with Standards Rule, and the Accounting Principles Rule of the Rules of Conduct.
-
A linear resonant actuator (LRA) is a type of vibration actuator that is used to create vibration in a cell phone or game controller. One type of construction for such an actuator is on the right...
-
How might an employer ensure that the term overqualified applicant is not just a code for too old?
-
If the joint cost function for two products is C(x, y) = xy2 + 1 dollars (a) Find the marginal cost (function) with respect to x. (b) Find the marginal cost with respect to y.
-
What principle(s) of internal control is (are) involved in making daily cash counts of over-the-counter receipts?
-
(a) What is a voucher system? (b) What principles of internal control apply to a voucher system?
-
(a) What is a voucher system? (b) What principles of internal control apply to a voucher system?
-
Crane Inc., reports accounting income of $ 1 0 9 , 0 0 0 for 2 0 2 3 , its first year of operations. The following items cause ta be different than income reported on the financial statements. 1 ....
-
Prepare a Statement of Shareholders' Equity for Dan's Dependable Delivery Dan's Dependable Delivery began the year with 3 3 , 0 0 0 $ 1 Common shares issued and outstanding. Paid in Capital in Excess...
-
Compare and contrast variable costing and absorption costing methods using numerical analysis. For a specific product line, ABC Corporation incurred total fixed manufacturing overhead costs of...
Study smarter with the SolutionInn App