Units-Of-Production Is an Appropriate Depreciation Method to Use When

question 121

Multiple Choice

Units-of-production is an appropriate depreciation method to use when

• A)it is impossible to determine the productivity of the asset.
• B)the asset's use will be constant over its useful life.
• C)the company is a manufacturing company.
• D)the asset's use varies significantly from one period to another.

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Definitions:

Article 9

A provision of the Uniform Commercial Code (UCC) that governs secured transactions or agreements involving personal property as collateral.

Collateral

Assets pledged by a borrower to secure a loan or guarantee repayment, which can be seized by the lender if the borrower fails to pay.

Security Instrument

A legal document that creates a lien on a property, securing the repayment of a loan or performance of an obligation.

Re-filed

The act of submitting or filing a document or case again after it has been dismissed or needs correction.