Salvage Value Is Not Considered Directly in the Determination of the Deprecation

question 46

Multiple Choice

Salvage value is not considered directly in the determination of the deprecation amount with the

• A) straight-line method.
• B) declining-balance method.
• C) sum-of-the-years'-digit method.
• D) units-of-production method.

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Definitions:

Investing Activities

Transactions related to the acquisition or disposal of long-term assets and investments that are not considered cash equivalents.

IFRS

International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board (IASB) that is global in scope.

Equity Investments

Investments in stock or equity interests in entities, representing ownership interest.

Adjusted Trial Balance

A list of all the accounts and their balances after adjusting entries have been made, used to prepare financial statements.