If an Asset Generates Revenues Evenly Over Its Useful Life,which

question 28

Multiple Choice

If an asset generates revenues evenly over its useful life,which depreciation method should be used?

• A)capital cost allowance
• B)declining-balance
• C)units-of-activity
• D)straight-line

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Definitions:

Stock Dividend

A distribution of additional shares of a company's stock to shareholders instead of cash payouts, based on the number of shares they already own.

Retained Earnings

These are profits that a company has earned to date, less any dividends or other distributions paid to investors.

Equity Financed

Refers to the method of raising capital by selling company shares to investors.

Market Price

The current value at which an asset or service may be traded in a public market.