The Depreciation Method in Which Residual Value Is Ignored Until

question 40

Multiple Choice

The depreciation method in which residual value is ignored until the end of the life of the asset is:

• A)units of output.
• B)reducing balance.
• C)First-in,first-out.
• D)straight line.

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Definitions:

Cash Dividends

The portion of a company's earnings that is distributed to shareholders in the form of cash payments.

Fiscal Year

A 12-month period used for accounting purposes, which may not necessarily align with the calendar year.

Statement of Cash Flows

A financial report that summarizes the amount of cash and cash equivalents entering and leaving a company, showing how the company raises and spends money during a specific period.

Financing Activities

Transactions between a company and its financiers, including equity, debt, and dividend payments, affecting the cash flow statement.