Which of the Following Is True

question 57

Multiple Choice

Which of the following is true?

• A) If using the double-declining-balance method, the total amount of depreciation expense during the life of the asset will be the highest.
• B) If using the units-of-output method, it is possible to depreciate more than the depreciable cost.
• C) If using the straight-line method, the amount of depreciation expense during the first year is higher than that of the double-declining-balance.
• D) Regardless of the depreciation method, the amount of total depreciation expense during the life of the asset will be the same.

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Definitions:

IASB and FASB

International Accounting Standards Board and Financial Accounting Standards Board, respectively, setting and promoting accounting standards.

Financial Position

A snapshot of the assets, liabilities, and equity of a company at a particular point in time, reflecting its economic condition.

Adjusted Trial Balance

A financial report that lists all accounts and their balances after adjustments have been made, used to ensure the total debits equal the total credits before preparing financial statements.

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within one year or within the operating cycle of a business.