The units-of-production method provides the closest matching of a long-lived asset's depreciation expense to the revenues generated by using that whe narly years of an asset's life and lower in later years.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Topic Video
Question

please answer why  the option is correct and remaining incorrect

 

QUESTION 11
The units-of-production method provides the closest matching of a long-lived asset's depreciation expense to the revenues generated by using that when the
O amount of production is the highest in the early years of an asset's life and lower in later years.
O long-lived asset is used by a merchandising operation.
amount of production remains fairly constant from one period to the next.
amount of asset production varies significantly from one period to the next
None of the above.
Transcribed Image Text:QUESTION 11 The units-of-production method provides the closest matching of a long-lived asset's depreciation expense to the revenues generated by using that when the O amount of production is the highest in the early years of an asset's life and lower in later years. O long-lived asset is used by a merchandising operation. amount of production remains fairly constant from one period to the next. amount of asset production varies significantly from one period to the next None of the above.
Expert Solution
steps

Step by step

Solved in 3 steps

Blurred answer
Knowledge Booster
Depreciation Accounting
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education