Which of the Following Depreciation Methods Allocates a Varying Amount

question 36

Multiple Choice

Which of the following depreciation methods allocates a varying amount of depreciation each year based on an asset's usage?

• A)the straight-line method
• B)the annuity method
• C)the units-of-production method
• D)the double-declining-balance method

---

Definitions:

Forbearance

The act of refraining from exercising a legal right; an agreement between a lender and a borrower in which the lender agrees to temporarily cease requiring mortgage payments, to delay foreclosure, or to accept smaller payments than previously scheduled.

Discount

A reduction from the usual cost of something, often applied to encourage buyers.

Preexisting Duty

An obligation that one is already legally bound to perform, which cannot serve as consideration for a new contract.

Extortion

The act of obtaining something, especially money, through force or threats.