1. Depreciation is best described as a method ofa. Asset valuationb. Current value allocationCost allocationC.d. Useful life determination2. All of the following factors are considered in determiningthe useful life of an asset, excepta. Expected usage of the assetb. Expected physical wear and tearc. Technical obsolescenced. Residual value3. Technical or commercial obsolescence arises froma. Expected usage of the assetb.c.Expected physical wear and tearChange or improvement in production or change in themarket demand for the product output of the assetd. Expiry date of related lease of the asset4. The production method of depreciation results ina. Constant charge over the useful life of the asset.b. Decreasing charge over the useful life of the asset.c. Increasing charge over the useful life of the asset.d. Variable charge based on the expected use or output ofthe asset.5. What factor must be present under the production methodof depreciation?a. Total units to be produced can be estimatedb. Production is constant over the life of the assetc. Repair costs increase with used. Obsolescence is expected

Hi studentSince there are multiple questions asked, we will answer only first question.Fixed assets…

Answered: 1. Depreciation is best described as a…

1. Depreciation is best described as a method of a. Asset valuation b. Current value allocation c. Cost allocation d. Useful life determination

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter7: Fixed Assets, Natural Resources, And Intangible Assets

Section: Chapter Questions

Problem 7.2.2MBA

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