Which of the Following Depreciation Methods Applies a Uniform Depreciation

question 73

Multiple Choice

Which of the following depreciation methods applies a uniform depreciation rate each period to an asset's book value?

• A) Straight-line
• B) Declining-balance
• C) Units-of-production
• D) Sum-of-the-years'-digits

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Definitions:

Investing Activity

Transactions involving the purchase or sale of long-term assets and investments, not relating directly to the entity’s primary business activities.

Cash Equivalent

Short-term, highly liquid investments that can be readily converted to cash with insignificant risk of changes in value.

Interest Rate

The proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage of the loan outstanding.

Financing Activities

Transactions and business events that affect long-term liabilities and equity of the company, such as issuing bonds or repaying bank loans.