The Calculation of Depreciation Using the Diminishing-Balance Method

question 115

Multiple Choice

The calculation of depreciation using the diminishing-balance method

• A) ignores residual value in determining the amount to which a constant rate is applied.
• B) multiplies a constant percentage times the previous year's depreciation expense.
• C) yields an increasing depreciation expense each period.
• D) multiplies a diminishing percentage times a constant carrying amount.

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Definitions:

Lewis Structure

A visual representation that shows the valence electrons of atoms within a molecule, helping to predict the arrangement of atoms, bond formation, and molecular shape.

Ethane

A colorless, odorless gas with the formula C2H6, used as a fuel and as a feedstock for the production of chemicals.

Octane

A hydrocarbon with the chemical formula C8H18, commonly used as a reference standard in determining the quality of gasoline fuels.

Propane

A flammable hydrocarbon gas that is a component of natural gas, commonly used as fuel.