Units-Of-Activity Is an Appropriate Depreciation Method to Use When

question 59

Multiple Choice

Units-of-activity is an appropriate depreciation method to use when

• A) it is impossible to determine the productivity of the asset.
• B) the asset's use will be constant over its useful life.
• C) the productivity of the asset varies significantly from one period to another.
• D) the company is a manufacturing company.

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Definitions:

Hydraulic Fracturing

A process used in the oil and gas industry to increase the flow of oil or gas from a well by injecting high-pressure fluid into the surrounding rock.

Fracking

A method of extracting natural gas or oil from the earth by injecting fluid into subterranean rocks at high pressure.

Civil Law

Civil law is a legal system that deals with disputes between private parties, and includes laws such as contracts, torts, and property, distinguishing it from criminal law.

Legal Realism

The school of jurisprudence which dictates that context must be considered as well as law. Context includes factors such as economic conditions and social conditions.