Which of the Following Depreciation Methods Is Used by Most

question 186

Multiple Choice

Which of the following depreciation methods is used by most corporations to calculate depreciation expense for their tax returns?

• A)MACRS
• B)Straight-line
• C)Units-of-production
• D)Double-declining balance

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Definitions:

Trial Balance

An accounting report that lists all the balances of each ledger account to ensure that debits equal credits, used as a tool for checking the accuracy of bookkeeping entries.

T Accounts

A graphical representation used in accounting to show the effects of transactions on individual accounts.

Net Income

The total earnings of a company after subtracting all expenses, taxes, and losses.

Cash Receipts

Inflows of cash, often from sales, interest, or dividends.