Identify the true statement: Group of answer choices The double-declining-balance method produces a decreasing annual depreciation expense over the plant asset’s life. Only the straight-line and units-of-production methods are acceptable under GAAP. Depreciation on company assets should only be recorded every other year. The straight-line method of depreciation will result in a different amount of depreciation expense being recorded for each year of the plant asset’s life.
Identify the true statement: Group of answer choices The double-declining-balance method produces a decreasing annual depreciation expense over the plant asset’s life. Only the straight-line and units-of-production methods are acceptable under GAAP. Depreciation on company assets should only be recorded every other year. The straight-line method of depreciation will result in a different amount of depreciation expense being recorded for each year of the plant asset’s life.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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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Identify the true statement:
Group of answer choices
The double-declining-balance method produces a decreasing annual depreciation expense over the plant asset’s life.
Only the straight-line and units-of-production methods are acceptable under GAAP.
Depreciation on company assets should only be recorded every other year.
The straight-line method of depreciation will result in a different amount of depreciation expense being recorded for each year of the plant asset’s life.
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