Choose the Word or Phrase in [ ] Which Will

question 91

Short Answer

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-When interest rates are falling,you would prefer a [fixed-rate | variable-rate] loan.

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Definitions:

Accumulated Depreciation

The total amount of depreciation expense that has been recorded over time for tangible assets, reducing their carrying value on the balance sheet.

Salvage Value

The forecasted sell-on value of an asset at the conclusion of its operational period.

Double-Declining Balance

A method of accelerated depreciation where an asset loses value at double the rate of the traditional straight-line depreciation method.

Straight-Line

A method of calculating depreciation or amortization by evenly allocating the cost of an asset over its expected useful life.