Which of the following is not true about straight-line deprecaition? Question 37 options: Straight-line depreciation requires...

Which of the following is not true about straight-line deprecaition? Question 37 options: Straight-line depreciation requires the s

imples data and calculations. Straight-line depreciation assumes equal productivity each period. Straight-line depreciation is the most common depreciation method used by companies. Straight-line depreciation ignores the salvage value of an asset.

Expert Solution

Correct answer:

Correct option(4) or Straight-line depreciation ignores the salvage value of an asset is correct answer because this not true about straight-line depreciation. Straight-line depreciation considers the salvage value of an asset while calculating the amount of depreciation.

Straight-line depreciation method, Depreciation p.a = (Cost - Salvage Value) / Useful Life

So Straight-line depreciation considers the salvage value of an asset and does not ignore the salvage value of an asset.

Incorrect answers:

Option(1) or Straight-line depreciation requires the simple data and calculations is incorrect answer because this is true statement that simple data and calculations are done in straight-line depreciation method.

Option(2) or Straight-line depreciation assumes equal productivity each period is incorrect answer because under this method the amount of depreciation remain same every year.

Option (3) or Straight-line depreciation is the most common depreciation method used by companies is incorrect answer because this method is commonly used by the companies as it is easy to use and understandable.

So correct answer is option (4)

ekkarill92 answered 2 years ago

Which of the following is true about MACRS depreciation? a. Depreciation begins in the middle of...

Which of the following is true about MACRS depreciation? a. Depreciation begins in the middle of the month in which real property is placed in service. b. Mid-quarter MACRS is required for all assets if real property is placed in service in the last quarter of the year. c. Commercial buildings are depreciated over 39 years using an accelerated method. d. Residential rental buildings are depreciated straight-line over 20 years.

Which of the following is true about the Efficient Market Hypothesis, EMH? Question 5 options: There...

Which of the following is true about the Efficient Market Hypothesis, EMH? Question 5 options: There is ample evidence to confirm the strong-form EMH. The semi-strong form EMH contains the weak-form EMH. It is well-established (in academic research) that you can generate additional returns using price and volume pattern data. Inside information is reflected in prices under the semi-strong form EMH.

Which of the following is NOT true about Income Statements? Question 2 options: Revenue recognition and...

Which of the following is NOT true about Income Statements? Question 2 options: Revenue recognition and the Matching Principle require the recognition of revenue in the time period for which the product or service has been substantially performed. Operating expenses flow the income statement in the period they are incurred, while capital spending is recorded on the balance sheet then depreciated. Nonrecurring items can distort reported earnings in a given period. Analysts only need to track reported income and earnings...

1.If a demand curve is a straight downward-sloping line, which of the following is true A....

1.If a demand curve is a straight downward-sloping line, which of the following is true A. The elasticity varies along the line B. The elasticity is constant along the line. C. The elasticity is inelastic along the line. D. The elasticity is perfectly elastic along the line. 2. The income elasticity for Good A is 0.7, and its cross elasticity with Good B is 0.7. What should we conclude about Good A? A. It is a normal good and a...

Which of the following statements about writing bad-news messages is true? Question 14 options: A) If...

Which of the following statements about writing bad-news messages is true? Question 14 options: A) If you must say "no," it is best to use the direct approach. B) A direct approach may be appropriate if you need to convince your readers that there is a problem they must act to solve. C) The direct approach should be used if you expect your message to shock or anger your reader. D) The indirect approach should be used with all bad-news...

Question 1 (1 point) Straight-Line depreciation and Double-Declining-Balance depreciation result in the same Accumulated Depreciation at...

Question 1 (1 point) Straight-Line depreciation and Double-Declining-Balance depreciation result in the same Accumulated Depreciation at the end of the asset's useful life. Question 1 options: True False Question 2 (1 point) If a company makes a journal entry to record a PP&E Impairment, the entry will cause: Question 2 options: Total Assets to Decrease Net Income to Increase Total Assets to Increase Total Liabilities to Increase Question 3 (1 point) We depreciate Land unless it contains natural resources. Question...

All of the following is true about DNA, except __________________. Question 10 options: A) it is...

All of the following is true about DNA, except __________________. Question 10 options: A) it is made by DNA replication during the S phase of interphase B) it is made of monomer subunits called amino acids C) its structure is called a double helix D) it codes for making proteins E) it is found in all organisms

Explain how straight- line depreciation is computed.

Which of the following depreciation methods does not use salvage value? A. Straight-line B. Unit output...

Which of the following depreciation methods does not use salvage value? A. Straight-line B. Unit output C. Double declining balance D. Some-of-the-year-digits Which of the following statements is correct? A. To have low IRR, low WACC B. To have high IRR, low WACC C. To have low IRR, high WACC D. To have high IRR, high WACC Which of the following depreciation methods is good for “Income Reporting”? A. Unit output B. Some-of-the-year-digits C. Double declining balance D. Straight-line Which...

There are two main methods of calculating depreciation: straight line and reducing balance. Which one of...

There are two main methods of calculating depreciation: straight line and reducing balance. Which one of the definitions describes the reducing balance method? A. An amount calculated on the basis of the anticipated economic life based upon the number of hours for which the asset is expected to be used B. An amount calculated using a fraction is computed by dividing the remaining useful life of the asset on a particular date by the sum of the year's digits C....

Question