2009-04-28_182340_Multiple_Choice

2009-04-28_182340_Multiple_Choice - 1 A principal objection...

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1. A principal objection to the straight-line method of depreciation is that it _______________. (Points: 1) provides for the declining productivity of an aging asset ignores variations in the rate of asset use tends to result in a constant rate of return on a diminishing investment base gives smaller periodic write-offs than decreasing charge methods 2. Roberts Truck Rental uses the group depreciation method for its fleet of trucks. When it retires one of its trucks and receives cash from a salvage company, the carrying value of property, plant, and equipment will be decreased by the_____________. (Points: 1) original cost of the truck. original cost of the truck less the cash proceeds. cash proceeds received. cash proceeds received and original cost of the truck. 3. Composite or group depreciation is a depreciation system whereby (Points: 1) the years of useful life of the various assets in the group are added together and the total divided by the number of items. the cost of individual units within an asset group is charged to expense in the year a unit is retired from service. a straight-line rate is computed by dividing the total of the annual depreciation
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2009-04-28_182340_Multiple_Choice - 1 A principal objection...

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