Which Depreciation Method Is Most Frequently Used in Businesses Today

question 195

Multiple Choice

Which depreciation method is most frequently used in businesses today?

• A) Straight-line
• B) Declining-balance
• C) Units-of-activity
• D) Double-declining-balance

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Definitions:

Gain on Sale

The profit realized from the sale of an asset when the selling price exceeds the asset's book value at the time of sale.

Consolidated Income Statement

A income statement that combines the financial performance of all subsidiaries with the parent company, eliminating intercompany transactions.

Income Tax Rate

The proportion of income that is taken from a person or business in the form of taxes.

Consolidated Retained Earnings

The portion of earnings not distributed as dividends but retained by the parent company and its subsidiaries for reinvestment.