Which of the Following Depreciation Methods Always Allocates a Higher

question 201

Multiple Choice

Which of the following depreciation methods always allocates a higher amount of depreciation in earlier years than in later years?

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

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Definitions:

Promissory Note

A financial instrument containing a written promise by one party to pay a definite sum of money to another party at a specified future date or on-demand.

Account Receivable

The amount customers are required to pay to a firm for goods and services already received but not yet paid for.

Payee

The party in a financial transaction who receives the payment.

Note Receivable

A written promise that a specified amount of money, plus potentially interest, will be paid by one party to another by a specific date.