Which of the Allowable Methods Allows the Most Accelerated Depreciation

question 42

Multiple Choice

Which of the allowable methods allows the most accelerated depreciation?

• A) 150 percent declining balance
• B) 200 percent declining balance
• C) Straight line
• D)Sum of the years digits
• E)None of these

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Definitions:

Writing Off

The process of acknowledging that a portion of a debt or an asset has become uncollectible or worthless and removing it from the financial statements.

Income Statement

A summary of the revenue and expenses for a specific period of time, such as a month or a year.

Contra Asset

An account on a company's balance sheet that reduces the total amount of the asset accounts, often used to account for depreciation or allowances for bad debts.

Uncollectible Receivables

Financial claims that are recognised as losses because they cannot be collected, typically due to debtor default.