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Look at the Following Two Examples

question 577

Multiple Choice

Look at the following two examples:
(1) XXXXXXXXX OOOOOOOOO
(2) ZWX ZQX YZV QWX ZWQ
You tend to perceive the elements in the first example as two units because of the law of _____. You tend to perceive the elements in the second example as five units because of the law of _____.


Definitions:

Straight-Line Method

A depreciation method that allocates the cost of an asset evenly over its useful life.

Depreciation

Distributing the cost of a physical asset methodically over its period of utility.

Residual Value

The estimated amount that an asset will be worth at the end of its useful life.

Double-Declining-Balance Method

A method of accelerated depreciation which doubles the straight-line depreciation rate and applies it to the asset's remaining book value each year.

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