A Revenue-Asset Relationship Exists With

question 215

Multiple Choice

A revenue-asset relationship exists with:

• A)prepaid expense adjusting entries.
• B)accrued expense adjusting entries.
• C)unearned revenue adjusting entries.
• D)accrued revenue adjusting entries.

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Definitions:

Units-Of-Output Method

A depreciation method where the expense is based on the actual output or usage of the asset, rather than the passage of time.

Double-Declining-Balance Method

A method of accelerated depreciation that doubles the straight-line depreciation rate, leading to higher depreciation expenses in the initial years of asset use.

Straight-Line Method

A method of allocating the cost of a tangible asset over its useful life in equal periodic amounts.

Straight-Line Depreciation

A method of allocating the cost of a tangible asset over its useful life in equal annual amounts, making it the simplest form of depreciation.