1. It is a depreciation method based on the assumption that the value of a property is directlyproportional to its age.a. Straight Line Methodb. Sinking Fund Methodc. Declining Balance Methodd. Service Output Method2. Which of the following is NOT a requirement of a depreciation method?a. It should be simpleb. It should recover the capitalc. BIR approvedd. The book value should be higher than the market value3. The decrease in the purchasing power of moneya. Devaluationb. Depreciationc. Inflationd. Depletion

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1. It is a depreciation method based on the assumption that the value of a property is directl proportional to its age. a. Straight Line Method b. Sinking Fund Method c. Declining Balance Method d. Service Output Method

1. It is a depreciation method based on the assumption that the value of a property is directl proportional to its age. a. Straight Line Method b. Sinking Fund Method c. Declining Balance Method d. Service Output Method

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

1. It is a depreciation method based on the assumption that the value of a property is directly
proportional to its age.
a. Straight Line Method
b. Sinking Fund Method
c. Declining Balance Method
d. Service Output Method
2. Which of the following is NOT a requirement of a depreciation method?
a. It should be simple
b. It should recover the capital
c. BIR approved
d. The book value should be higher than the market value
3. The decrease in the purchasing power of money
a. Devaluation
b. Depreciation
c. Inflation
d. Depletion

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