The Modified Accelerated Cost Recovery System (MACRS) Is a Depreciation

question 195

Multiple Choice

The Modified Accelerated Cost Recovery System (MACRS) is a depreciation method which

• A)is used for tax purposes.
• B)must be used for financial statement purposes.
• C)is required by the SEC.
• D)expenses an asset over a single year because capital acquisitions must be expensed in the year purchased.

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Definitions:

Estimable

Capable of being estimated or approximated in quantity or value.

Interest Calculations

The process of determining the amount of interest due or earned over a specified period of time, often based on principal amount, rate, and time.

Note Issued

A monetary tool signifying a commitment to pay a determined sum of money on a designated future date.

Quick Assets

Resources that can be rapidly turned into cash without a decrease in value, such as cash itself, tradable securities, and money owed from accounts receivable.