What Is M-2 and What Are the Major Elements That

question 109

Essay

What is M-2 and what are the major elements that make it up?

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Definitions:

Straight-Line

An approach where the expense of an asset is uniformly allocated across its lifespan to calculate depreciation.

Double-Declining-Balance

A depreciation technique that increases the standard rate of depreciation twofold, thus diminishing an asset's value at a faster pace.

Units-of-Activity

A depreciation method that allocates the cost of an asset over its useful life based on the number of units it produces or hours it operates.

Straight-Line Depreciation

A method of calculating the depreciation of an asset by evenly spreading its cost over its useful life.