Depreciation Quiz and Test: Check Your Understanding

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The process of allocating the cost of inventory over their useful lives

The process of allocating the cost of tangible assets over their useful lives (correct)

The process of allocating the cost of intangible assets over their useful lives

The process of allocating the cost of liabilities over their useful lives

Straight-line method

Units of production method

Sum-of-the-years'-digits method

Double-declining balance method (correct)

Reduces the value of assets on the balance sheet and reduces net income on the income statement (correct)

Increases the value of assets on the balance sheet and increases net income on the income statement

Increases the value of assets on the balance sheet and reduces net income on the income statement

Reduces the value of assets on the balance sheet and increases net income on the income statement

To record the allocation of the asset's cost over its useful life Signup and view all the answers

It allocates an equal amount of depreciation expense each accounting period Signup and view all the answers

It impacts the amount of depreciation expense and therefore, the net income Signup and view all the answers

Depreciation Quiz