1.If asset produces more revenue in its early years , the depreciation method be
ID: 2435192 • Letter: 1
Question
1.If asset produces more revenue in its early years , the depreciation method best suited for this asset would be the:A. Units – of –production method
B. Straight –line method
C. Double – declining balance method
D. Expense method
2.Which of the following would NOT be considered as part of the cost of the land ?
A. Paving
B. Survey and legal fees
C. Unpaid property taxes on the land
D. Realtor commissions
3. Which would NOT be considered part of land improvements?
A. In-ground sprinkler systems
B. Fencing
C. Signs
D. Removing unwanted buildings from the land
4. The depreciated method in which the depreciable cost of an asset is apportioned equally over its estimated life in terms of month or years is called the
A. Straight – line method
B. Units – of – production method
C. Amortization method
D. Double – declining – balance method
5. A method best suited for depreciating items such as copy machines and vehicles would be the :
A. Double – declining balance method
B. Expense method
C. Units – of – production method
D. Straight – line method
Explanation / Answer
1.If asset produces more revenue in its early years , the depreciation method best suited for this asset would be the: C. Double – declining balance method 2.Which of the following would NOT be considered as part of the cost of the land ? C. Unpaid property taxes on the land 3. Which would NOT be considered part of land improvements? C. Signs 4. The depreciated method in which the depreciable cost of an asset is apportioned equally over its estimated life in terms of month or years is called the A. Straight – line method 5. A method best suited for depreciating items such as copy machines and vehicles would be the : A. Double – declining balance method
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