Ch 111

Ch 111 - 10/26/2009 Kieso, Weygandt, Warfield: Intermediate...

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94% (15 out of 16 correct) Responses to questions are indicated by the symbol. 1. Depreciation is a: A. decline in an asset's fair market value. B. matter of valuation. C. means of cost allocation. D. measure of changes in an asset's value. Depreciation is not a valuation process but a means of cost allocation. 2. All of the following are economic factors related to depreciation except: A. inadequacy. B. obsolescence. C. supersession. D. wear and tear. All of the options are economic factors except wear and tear. 3. The depreciable base of an asset is its original cost: A. less accumulated depreciation. B. plus accumulated depreciation. C. less salvage value. D. plus salvage value. The depreciable base is an asset's cost less salvage value. 4. Which one of the following is not an accelerated depreciation method? A. Sum-of-the years' digits method. 10/26/2009 Kieso, Weygandt, Warfield: Intermediate… http://bcs.wiley.com/he-bcs/Books?acti… 1/5
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B. Double-declining-balance method. C. Declining-balance method. D. Activity method. All of the options are accelerated depreciation methods except the activity method. 5. The depreciation method that considers depreciation a function of time rather than a function of usage is the: A. activity method.
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Ch 111 - 10/26/2009 Kieso, Weygandt, Warfield: Intermediate...

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