#1
Which of the following is a depreciation method based on time?
Straight-line depreciation
Double-declining balance depreciation
Units of production depreciation
Sum-of-the-years'-digits depreciation
#2
Which of the following is NOT a depreciation method?
MACRS depreciation
Unit-of-time depreciation
Activity-based depreciation
Cost allocation depreciation
#3
What is the salvage value of an asset?
The value of the asset at the end of its useful life
The value of the asset when it is first acquired
The value of the asset at the beginning of its useful life
The value of the asset after depreciation
#4
Which of the following is NOT a depreciation expense recognition method?
Straight-line depreciation
Declining balance depreciation
Sum-of-the-years'-digits depreciation
FIFO depreciation
#5
Which of the following is a depreciation method that allocates an equal amount of depreciation expense each year?
Straight-line depreciation
Double-declining balance depreciation
Units of production depreciation
Sum-of-the-years'-digits depreciation
#6
What is the formula for straight-line depreciation?
Cost - Salvage Value
(Cost - Salvage Value) / Useful Life
(Cost - Salvage Value) * Depreciation Rate
Cost / Useful Life
#7
Which depreciation method considers higher depreciation expenses in the earlier years of an asset's life?
Straight-line depreciation
Double-declining balance depreciation
Units of production depreciation
Sum-of-the-years'-digits depreciation
#8
Which of the following factors does NOT affect depreciation?
Cost of the asset
Useful life of the asset
Salvage value of the asset
Market value of the asset
#9
What does MACRS stand for in depreciation accounting?
Modified Accelerated Cost Recovery System
Modern Asset Cost Recovery System
Market Adjustment and Cost Recovery System
Management Asset Control and Recovery System
#10
Which depreciation method is often used for assets with unpredictable patterns of use?
Straight-line depreciation
Units of production depreciation
Double-declining balance depreciation
Sum-of-the-years'-digits depreciation
#11
What is the formula for calculating depreciation expense using the units of production method?
(Cost - Salvage Value) / Useful Life
(Cost - Salvage Value) * Depreciation Rate
(Units Produced / Total Expected Units) * (Cost - Salvage Value)
Cost / Useful Life
#12
What is the primary advantage of the double-declining balance depreciation method?
It's simpler to calculate than other methods.
It provides a more accurate representation of an asset's depreciation.
It results in a higher depreciation expense in the early years.
It considers the salvage value of the asset.
#13
Which of the following depreciation methods allocates the same amount of depreciation expense each year?
Straight-line depreciation
Double-declining balance depreciation
Units of production depreciation
Sum-of-the-years'-digits depreciation
#14
What is the primary disadvantage of the double-declining balance depreciation method?
It's more complicated to calculate than other methods.
It doesn't account for the salvage value of the asset.
It results in lower depreciation expense in the early years.
It may not accurately reflect the pattern of an asset's use.
#15
What is the purpose of depreciation accounting?
To increase the value of assets over time
To track the decrease in value of assets over time
To maintain the same value of assets over time
To dispose of assets
#16
Which depreciation method assumes that the asset is used at a constant rate over its useful life?
Straight-line depreciation
Double-declining balance depreciation
Units of production depreciation
Sum-of-the-years'-digits depreciation