Examlex
Which of the following statements is correct?
Straight-Line Method
A depreciation method that allocates an equal amount of the depreciable cost of an asset to each year of the asset's useful life.
Capital Lease
An agreement that grants the lessee the right to use an asset for a long period, typically seen as a purchase by the lessee for accounting purposes.
Original Amount
The initial sum of money involved in a financial transaction, before any deductions, depreciation, or appreciation.
Guaranteed Residual Value
An assurance that an asset will have a specified value at the end of its lease term.
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