One Reason Management May Choose the Straight-Line Method of Depreciation

question 5

True/False

One reason management may choose the straight-line method of depreciation is because it is easy to compute.

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Definitions:

Deferred Revenue

Income received by a company for goods or services yet to be delivered or performed.

Mortgages Payable

Long-term liabilities representing money a company owes on property mortgages that are due beyond the next year.

Periodic Instalment

Periodic installment refers to a regular, scheduled payment made over time towards settling a debt, which may include portions of both principal and interest.

Interest Portion

The amount of a payment that goes toward interest on a loan.