Which One Is Not Based on the Passage of Time

question 21

Multiple Choice

Which one is not based on the passage of time?

• A)Straight-line method
• B)Declining-balance method
• C)Units-of-production method
• D)None of these
• E)None of these.

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Definitions:

Debits and Credits

Accounting entries that respectively increase asset or expense accounts and decrease liability, revenue, or equity accounts (for debits), and vice versa for credits.

Current Assets

Assets that a company expects to convert to cash or use up within one year or the operating cycle, whichever is longer.

Long-term Investments

Assets that a company intends to hold for more than one year, typically including stocks, bonds, or real estate, aimed at generating long-term income or appreciation.

Intangible Assets

Non-physical assets of value to a company, such as patents, trademarks, goodwill, and copyrights.