The ______ Approach Utilizes Published Statistics and Weights Them by an Index

question 56

Multiple Choice

The ______ approach utilizes published statistics and weights them by an index that may be some factor such as the percentage of the population within your designated geographic area.

• A) Broad-based
• B) Narrow-focus
• C) Statistic-specific
• D) Top-down

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Definitions:

Receivables

Money owed to a company by its customers for goods or services that have been delivered or used but not yet paid for.

Modified Accelerated Cost Recovery System (MACRS)

A method of depreciation used for tax purposes in the United States that allows businesses to recover investments in certain property over a specified life through annual deductions.

Tax Deductions

Expenses that can be subtracted from gross income to reduce taxable income and overall tax liability.

Half-Year Convention

The half-year convention is a tax and accounting principle that allows for depreciation of assets to be calculated as if they had been in service for half a year, regardless of when they were actually acquired during the fiscal year.