When a Small Retail Chain Hires an Accountant to Do

question 195

Multiple Choice

When a small retail chain hires an accountant to do its income taxes,the retail chain would have purchased a(n)

• A)ancillary service.
• B)industrial service.
• C)specialty service.
• D)accessory service.
• E)contractual service.

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Definitions:

Straight-Line Method

A method of depreciation that allocates an equal amount of the asset's cost to each accounting period over its useful life.

Depreciation Expense

Apportioning the cost of a concrete asset over its duration of use.

Units-Of-Activity

A depreciation method that allocates expense based on the actual usage or activity level of an asset.

Depreciation Method

A systematic approach used to allocate the cost of a tangible asset over its useful life, such as straight-line or declining balance methods.