Choose the Statement About Depreciation That Is Correct

question 17

Multiple Choice

Choose the statement about depreciation that is correct.

• A) Yearly depreciation will always be higher using the reducing-balance method.
• B) At the end of the asset's useful life, total depreciation charged will be the same whichever depreciation method is used.
• C) Yearly depreciation will always be higher using the straight-line method.
• D) Yearly depreciation will always be lower using the units of production method.

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Definitions:

Term Deposit

A bank deposit that has a fixed term and typically earns higher interest than regular savings accounts.

Simple Interest Rate

The percentage of interest calculated only on the principal amount of a loan or investment, without compounding.

Treasury Bill

A short-term government security issued at a discount from par value and paying no interest, maturing in a year or less.

Simple Interest

Interest calculated only on the principal amount, without compounding on accumulated interest.