The Depreciation Method Using a Fixed Rate Applied to the Undepreciated

question 78

Multiple Choice

The depreciation method using a fixed rate applied to the undepreciated cost of the asset each year, resulting in successively smaller depreciation charges as the undepreciated cost diminishes year by year is called the

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

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