Indicate Whether Each of the Following Statements Is True or False

question 143

Short Answer

Indicate whether each of the following statements is true or false.
_____ a)Straight-line depreciation is the most widely used method in the U.S.
_____ b)An accelerated depreciation method provides a lower depreciation charge in the early years of an asset's life cycle than does the straight-line method.
_____ c)The units-of-production depreciation method allocates the cost of a plant asset in proportion to the asset's usage.
_____ d)Total depreciation expense recognized over the asset's life is not affected by the choice of depreciation methods.
_____ e)The entry to record depreciation affects the income statement and the statement of cash flows but not the balance sheet or statement of changes in stockholders' equity.

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Definitions:

Perfectly Inelastic

Describes a situation where the demand for a good does not change in response to a change in price.

Price Elasticity

A measure of how much the quantity demanded of a good responds to a change in the price of that good, defined as the percentage change in quantity demanded divided by the percentage change in price.

Demand Curve

A diagram displaying the connection between a product or service's price and the amount requested over a specified timeframe.

Price Elasticity

A gauge of the responsiveness of the amount of a product desired to alterations in its cost, reflecting demand's sensitivity to changes in price.