The Depreciation Method That Applies a Constant Percentage to the Carrying

question 13

Multiple Choice

The depreciation method that applies a constant percentage to the carrying amount at the beginning of the period in calculating depreciation is called

• A) straight-line.
• B) units-of-production.
• C) diminishing-balance.
• D) component depreciation.

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Definitions:

Operating Expenses

Costs associated with a company's main operational activities, excluding the cost of goods sold.

Net Income

The total profit of a company after all expenses and taxes have been deducted from revenue, indicating the financial performance over a specific period.

Service Businesses

Businesses that primarily offer intangible products or services to consumers or other businesses.

Merchandising Business

A merchandising business purchases and sells goods in their original form without undergoing transformation, aiming to profit from the retail or wholesale distribution.