Which of the Following Depreciation Methods Allocates a Fixed Amount

question 111

Multiple Choice

Which of the following depreciation methods allocates a fixed amount of depreciation to kilometres driven, hours used, or some other measure of the asset's utilisation?

• A)Units- of- production
• B)Sum- of- digits
• C)Straight- line
• D)Reducing- balance

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Definitions:

ROE

Return on Equity, a financial ratio that measures the profitability of a firm relative to shareholders' equity, indicating how efficiently a company uses investments to generate earnings growth.

EPS

Earnings Per Share; a key financial metric that divides a company's profit by the outstanding shares of its common stock.

Equity

The value of an asset after deducting the value of liabilities, representing an owner's interest in a company or property.

Debt

Money owed by one party to another, typically used as a means of borrowing to finance an activity or purchase.