Which Depreciation Method Ignores Residual Value When Computing the Depreciable

question 25

Multiple Choice

Which depreciation method ignores residual value when computing the depreciable base of an asset?

• A)sum-of-the-years'-digits method
• B)double-declining-balance method
• C)composite method
• D)group method

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Definitions:

Fiscal Year

A twelve-month period used for accounting purposes and preparing financial statements, which may or may not align with the calendar year.

Capital Equipment

Large, long-term investments in goods or machinery used by a business to produce goods or services.

Sentence Length

The number of words or characters constituting a sentence, influencing readability and style in written communication.

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The careful and deliberate choice of words to convey a specific message, tone, or effect efficiently.