​When Using the Spreadsheet (Work Sheet)method to Analyze Noncash Accounts,it

question 47

Multiple Choice

​When using the Spreadsheet (work sheet) method to analyze noncash accounts,it is best to start with

• A) ​cash
• B) ​net income
• C) ​retained earnings
• D) ​revenue

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Definitions:

MACRS

Modified Accelerated Cost Recovery System, a method of depreciation for tax purposes in the United States that allows faster write-offs of assets.

Straight-Line

A method of calculating depreciation of an asset, which allocates an equal amount of depreciation to each year of the asset's useful life.

Sum-Of-Years' Digits

A depreciation method that accelerates the expense recognition, using a decreasing fraction of years remaining over the sum of the years' digits.

Double-Declining Balance

A method of accelerated depreciation which doubles the normal depreciation rate, reducing the asset's book value more quickly in its early years.