When an Accelerated Depreciation Method Is Used to Calculate Depreciation

question 6

Multiple Choice

When an accelerated depreciation method is used to calculate depreciation expense:

• A)the net book value of the asset halfway through its useful life will be less than if straight-line depreciation is used.
• B)the net book value of the asset at the end of its useful life will be less than if straight-line depreciation is used.
• C)depreciation expense will be less in the early years of the asset's life than if straight-line depreciation is used.
• D)the accumulated depreciation account balance will increase by a larger amount in the last half of an asset's life than if straight-line depreciation is used.

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Definitions:

Annual Dividend

The total amount of dividend payments made to shareholders in a year, often expressed as a per-share amount.

Yield of The Stock

The income return on an investment, such as dividends received from holding a stock, expressed usually as a percentage of the stock's current market price.

Limit Order

Instructions to the broker that name a specific price for a share of stock.

Percent Change

The rate at which a quantity increases or decreases compared to its original value, expressed as a percentage.