7. The calculation of depreciation using the declining-balance method ignores salvage value in determining the amount to which a constant rate is applied. 8. Inflation occurs whenever the price level falls continuously over a period of time. 9. When the supply of a product or service goes down and the demand stays the same the Price will typically fall. 10. To earn as much interest as possible, you should open a savings account that earns simple interest and has the highest interest rate.
7. The calculation of depreciation using the declining-balance method ignores salvage value in determining the amount to which a constant rate is applied. 8. Inflation occurs whenever the price level falls continuously over a period of time. 9. When the supply of a product or service goes down and the demand stays the same the Price will typically fall. 10. To earn as much interest as possible, you should open a savings account that earns simple interest and has the highest interest rate.
Chapter16: Real Estate And High-risk Investments
Section: Chapter Questions
Problem 3DTM
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Depreciation Methods
The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.
Depreciation Accounting
In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.
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Solve all please
True or false
![7. The calculation of depreciation using the declining-balance method ignores salvage value in
determining the amount to which a constant rate is applied.
8. Inflation occurs whenever the price level falls continuously over a period of time.
9. When the supply of a product or service goes down and the demand stays the same the Price will
typically fall.
10. To earn as much interest as possible, you should open a savings account that earns simple
interest and has the highest interest rate.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6971973b-dc3c-465f-a208-76a3b034b7cc%2F7f6cd5c6-4efd-4284-a6d5-82c27892fafb%2Fzz6qcni_processed.jpeg&w=3840&q=75)
Transcribed Image Text:7. The calculation of depreciation using the declining-balance method ignores salvage value in
determining the amount to which a constant rate is applied.
8. Inflation occurs whenever the price level falls continuously over a period of time.
9. When the supply of a product or service goes down and the demand stays the same the Price will
typically fall.
10. To earn as much interest as possible, you should open a savings account that earns simple
interest and has the highest interest rate.
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