Which of the Following Accounting Methods Is Usually Used to Compute

question 26

Multiple Choice

Which of the following accounting methods is usually used to compute amortization expense?

• A)declining-balance
• B)units-of-production
• C)straight-line
• D)first-in, first-out

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Definitions:

Price

The amount of money required to purchase a good or service; the value that must be exchanged to obtain a particular item.

Perfect Competitor

A firm in a perfectly competitive market, where there are many buyers and sellers, all products are identical, and no single buyer or seller can influence the market price.

Perfect Competitor

A theoretical market structure where numerous small firms compete against each other with no single company controlling the market price.

Long Run

A period in economics sufficient for all markets to adjust, including production, labor, and capital.