Blanket Airlines Acquires a New Aircraft

question 96

Multiple Choice

Blanket Airlines acquires a new aircraft.It has an estimated life of 15 years and should be used for 15,000 hours of flight.What is the most appropriate method of depreciation to properly match revenues and expenses?

• A)Double-declining-balance
• B)Revenue expenditure method
• C)Straight-line
• D)Units-of-production

---

Definitions:

PQ = GDP

An equation stating that the price level (P) times the quantity of output (Q) is equal to the Gross Domestic Product.

Equation of Exchange

A formula representing the relationship between the money supply, its velocity, the price level, and the volume of transactions in an economy.

False Statement

An untrue or misleading assertion or claim intentionally or unintentionally conveyed as a fact.

Monetarists

Economists who support the idea that the money supply's fluctuations profoundly influence national output in the immediate future and the price level over more extended periods.