The Depreciation Method That Does Not Use Salvage Value in Calculating

question 29

Multiple Choice

The depreciation method that does not use salvage value in calculating the first year's depreciation expense is:

• A) straight-line method
• B) units-of-activity method
• C) double-declining-balance method
• D) straight-line method and units-of-activity method

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Definitions:

Merchant

An individual or business entity engaged in the sale of goods or services, often characterized by expert knowledge or the ability to deal in a particular commercial field.

Physical Possession

The actual holding or control of an object, property, or asset by an individual or entity.

Risk Of Loss

The potential for an investment, asset, or transaction to result in a financial loss rather than a gain.

F.O.B. Ocean City

Free on Board Ocean City, a shipping term indicating that the seller is responsible for goods and their cost of transport until they are loaded aboard a vessel at Ocean City.