A Method That Allocates an Equal Portion of the Total

question 20

Multiple Choice

A method that allocates an equal portion of the total depreciation for a property,plant and equipment asset to each accounting period during its useful life is called:

• A) Accelerated depreciation.
• B) Double-declining-balance depreciation.
• C) Straight-line depreciation.
• D) Units-of-production depreciation.
• E) Capital cost allowancE.

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Definitions:

Payback Period

The time it takes for an investment to generate income or revenue equal to its cost, used to assess the feasibility or risk of an investment.

Cash Flows

The net amount of cash being transferred into and out of a business.

Internal Rate

The interest rate at which the net present value of all the cash flows (both positive and negative) from a project or investment equals zero, used in capital budgeting to measure and compare the profitability of investments.

Nth-Order Equations

Equations that involve derivatives of an unknown function to the nth degree, often found in mathematics and physics.