When an Accelerated Depreciation Method Is Used to Calculate Depreciation

question 6

Multiple Choice

When an accelerated depreciation method is used to calculate depreciation expense:

• A)the net book value of the asset halfway through its useful life will be less than if straight-line depreciation is used.
• B)the net book value of the asset at the end of its useful life will be less than if straight-line depreciation is used.
• C)depreciation expense will be less in the early years of the asset's life than if straight-line depreciation is used.
• D)the accumulated depreciation account balance will increase by a larger amount in the last half of an asset's life than if straight-line depreciation is used.

---

Definitions:

Patent Account

An account on the balance sheet that represents the cost of purchasing patents or the expenses incurred in securing patents.

Successful Product

A product that achieves significant sales, profitability, and/or market share goals.

Recognized

The formal acknowledgement in accounting when an item is recorded and reflected in the financial statements.

Goodwill

Represents the excess value paid for a company over its fair market value, often related to intangible assets like brand reputation or customer relationships.