Which of the Following Statements Regarding Straight-Line Depreciation Is Correct

question 59

Multiple Choice

Which of the following statements regarding straight-line depreciation is correct?

• A) Straight-line depreciation is by far the most common method of depreciation used in the U.S.
• B) When the straight-line method is used to compute depreciation, an asset's carrying value remains constant over the life of the asset.
• C) Straight-line depreciation is an approved method to allocate the cost of an asset to expense and it serves as a measure of the physical decline in the asset.
• D) The straight line method of depreciation results in a straight-line increase of depreciation expense over the life of an asset.

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Definitions:

Df

Short for degrees of freedom, it refers to the number of independent values in a calculation that are free to vary.

Mean Square

The average of the squares of the differences between the observed and expected values, used in various statistical methods, such as ANOVA.

Main Effect

In analysis of variance, the direct influence of an independent variable on a dependent variable, discounting interactions with other variables.

Factor A

A variable manipulated or monitored to determine its effects on an outcome in an experiment.