When an Accelerated Depreciation Method Is Used to Calculate Depreciation

question 6

Multiple Choice

When an accelerated depreciation method is used to calculate depreciation expense:

• A)the net book value of the asset halfway through its useful life will be less than if straight-line depreciation is used.
• B)the net book value of the asset at the end of its useful life will be less than if straight-line depreciation is used.
• C)depreciation expense will be less in the early years of the asset's life than if straight-line depreciation is used.
• D)the accumulated depreciation account balance will increase by a larger amount in the last half of an asset's life than if straight-line depreciation is used.

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Definitions:

Budget Deficit

A budget deficit occurs when a government's expenditures exceed its revenues over a specified period, leading to borrowing or the use of saved reserves to meet the shortfall.

Government Budget Deficit

occurs when a government's expenditures exceed its revenues, leading to borrowing or debt accumulation.

U.S. Treasury

The government department responsible for managing federal finances, including issuing currency and managing public debt.

Securities

Financial instruments representing ownership (stocks), a debt agreement (bonds), or rights to ownership (derivatives).