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LALAINE CAPARAS
on Nov 18, 2024

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Which of the following is true?

A) If using the double-declining-balance method, the total amount of depreciation expense during the life of the asset will be the highest.
B) If using the units-of-output method, it is possible to depreciate more than the depreciable cost.
C) If using the straight-line method, the amount of depreciation expense during the first year is higher than that of the double-declining-balance.
D) Regardless of the depreciation method, the amount of total depreciation expense during the life of the asset will be the same.

Double-Declining-Balance Method

An accelerated depreciation method where twice the straight-line depreciation rate is applied to the diminishing balance of an asset's book value.

Total Depreciation Expense

Total Depreciation Expense is the cumulative amount of depreciation that has been charged on a company's assets over a specific period to account for the reduction in value due to wear and tear, age, or obsolescence.

Units-Of-Output Method

A depreciation method where the useful life of an asset is expressed in terms of the total number of units it can produce during its life.

  • Comprehend the various depreciation techniques and their role in distributing the cost over the lifespan of an asset.
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AA
Ariel AlexanderNov 21, 2024
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