Linear Trend Extrapolation Is a Form of Trend Extrapolation in Which

question 58

Multiple Choice

Linear trend extrapolation is a form of trend extrapolation in which the

• A) pattern changes from year to year.
• B) pattern is always a straight line.
• C) slope of the line is tied directly to profits.
• D) shape of the pattern is a hyperbola.
• E) pattern follows an S-shaped curve.

---

Definitions:

Annual Straight-Line Depreciation

A method of calculating the depreciation of an asset which spreads the cost evenly over its useful life.

Units-Of-Output Method

A depreciation calculation method that spreads the cost of an asset over its useful output or units produced.

Depreciation Expense

The allocated amount of an asset's initial cost over its useful life to account for its decrease in value.

Operating Hours

The scheduled or actual hours during which a business is open to conduct operations or provide services to customers.