A Depreciation Method in Which an Equal Amount of Depreciation

question 11

Multiple Choice

A depreciation method in which an equal amount of depreciation expense is assigned to each year of the asset's use is the:

• A)units-of-production method.
• B)straight-line method.
• C)accelerated depreciation method.
• D)estimated residual value method.

---

Definitions:

Cost Of Goods Sold

Costs directly linked to manufacturing goods that a company sells, comprising expenditures on materials and labor.

Inventory Turnover

A proportion indicating the frequency with which a business has sold its inventory and replenished it within a specific timeframe.

Current Liabilities

Financial obligations of a business that are due and payable within one year, including accounts payable, short-term debt, and other short-term obligations.

Quick Ratio

The quick ratio, or acid-test ratio, measures a company's ability to meet its short-term obligations with its most liquid assets.