Match Each Statement with the Correct Term Below

question 33

Multiple Choice

Match each statement with the correct term below.
-Depreciation

• A)Trucks, and passenger automobiles.
• B)Used to recover the investment in intangible assets.
• C)Used to recover the investment in long-lived tangible business-use assets.
• D)An attempt to stimulate capital investment by small businesses.
• E)Used to recover the investment in assets that waste away through extraction.

---

Definitions:

Straight-Line Method

A method of calculating depreciation or amortization by spreading the cost of an asset evenly across its useful life.

Accumulated Depreciation

The total amount of depreciation expense allocated to a fixed asset since it was put into use.

Cost Of Production

The total expenditure incurred in manufacturing a product or providing a service, including materials, labor, and overhead costs.

Initial Contribution

The initial investment or capital put into a business venture or project by its founders or investors.