Examlex
Which statement is true?
Modified Accelerated Cost Recovery System
A tax depreciation system in the United States that allows for faster asset depreciation in the early years of asset life.
Straight-Line Depreciation
A method of allocating the cost of a tangible asset evenly over its useful life, used for accounting and tax purposes.
Double Declining-Balance Depreciation
A method of accelerated depreciation which doubles the rate at which an asset’s book value depreciates compared to straight-line depreciation.
Annual Depreciation Expense
The portion of the cost of a fixed asset that is charged as an expense in a particular fiscal year, as a result of wear, tear, and obsolescence.
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