The Totals in the Inventory Process Balance Sheet Accounts Reflect

question 31

Multiple Choice

The totals in the inventory process balance sheet accounts reflect

• A)all the transactions recorded during the year
• B)a beginning balance as of the last day of the current year
• C)only the amounts in the accounts on the last day of the year
• D)the total amount of the transactions recorded during the year
• E)the net amount of the transactions recorded during the year
• F)both A and B
• G)both C and E

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Definitions:

Double-Declining-Balance

A method of accelerated depreciation which doubles the normal depreciation rate, reducing the value of an asset more quickly.

Depreciation Expense

Systematically spreading the expense of a physical asset over its duration of utility.

Units-of-Activity Method

A depreciation method where the expense is based on the number of units produced or the use of the asset, rather than the passage of time.

Double-Declining-Balance

An accelerated method of depreciation that doubles the normal depreciation rate to expense the asset more quickly.