The ________ Method of Depreciation Assumes That the Value of an Asset

question 96

Multiple Choice

The ________ method of depreciation assumes that the value of an asset depreciates more in the first year than in the second year.

• A)accumulated
• B)double distributing-balance
• C)declining-balance
• D)straight-line

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Definitions:

Working Capital

The difference between a company's current assets and current liabilities, indicating the financial health and operational efficiency.

Payback Period

The duration needed to recoup the cost of an investment.

Straight-Line Depreciation

Straight-line depreciation is an accounting method of allocating the cost of a tangible asset over its useful life in equal annual amounts.

Net Present Value

A method used in capital budgeting to assess the profitability of an investment or project by calculating the difference between the present value of cash inflows and outflows.