The Depreciation Method That Applies a Constant Percentage to Depreciable

question 272

Multiple Choice

The depreciation method that applies a constant percentage to depreciable cost in calculating depreciation is

• A) straight-line.
• B) units-of-activity.
• C) declining-balance.
• D) None of these answers are correct.

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Definitions:

Federal Income Tax

A tax levied by the United States Internal Revenue Service on the annual earnings of individuals, corporations, trusts, and other legal entities.

Withholding Allowances

The exemptions claimed by an employee on their W-4 form to determine how much of their income is withheld for taxes.

Accounting Period

A specific time range for which financial statements are prepared, often quarterly or annually, to present the financial status and performance of a company.

Note Payable

A written agreement where one party promises to pay another party a certain amount of money, often including interest, at a future date or on demand.