Answered: Which depreciation method is most…

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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Which depreciation method is most frequently used in businesses today? Select one: a. Straight-line b. Declining-balance c. Units-of-activity d. Double-declining-balance Two methods of accounting for uncollectible accounts are the Select one: a. allowance method and the accrual method. b. direct write-off method and the accrual method. c. allowance method and the net realizable method. d. direct write-off method and the allowance method. Which of the following methods of computing depreciation is production based? Select one: a. Units-of-activity b. Straight-line c. Declining-balance d. None of these answer choices are correct. An alternative name for Bad Debt Expense is Select one: a. Collection Expense. b. Credit Loss Expense. c. Deadbeat Expense. d. Uncollectible Accounts Expense. A company purchased factory equipment for $700,000. It is estimated that the equipment will have a $70,000 salvage value at the end of its estimated 5-year useful life. If the company uses the double-declining-balance method of depreciation, the amount of annual depreciation recorded for the second year after purchase would be Select one: a. $280,000. b. $168,000. c. $252,000. d. $120,960.

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