Using the Units-Of-Activity Method of Depreciating Factory Equipment Will Generally

question 137

True/False

Using the units-of-activity method of depreciating factory equipment will generally result in more depreciation expense being recorded over the life of the asset than if the straight-line method had been used.

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Definitions:

Condition Subsequent

A condition in a contract that, when fulfilled, terminates an existing obligation under the contract.

Legal Tender

Currency that by law must be accepted as payment for debts and financial obligations.

Breach Of Warranty

The failure to fulfill the terms of a promise or assertion concerning the quality or nature of a product or service.

Exemption Clause

Contractual terms that aim to limit or exempt a party from liability or obligation in certain situations; a reiteration emphasizing its role as a liability limiter.