5 Questions
Which method of depreciation calculates the same amount of expense for each year of the asset lifespan?
Straight-Line Method
Depreciation is the determination of the cost incurred in the ________ of a particular tangible asset.
life expectancy
What is the main reason for the depreciation of physical assets?
Obsolescence
The units of production method of depreciation is based on the total number of ________ generated by utilizing the asset.
hours
What is the formula for calculating depreciation using the straight-line method?
Total cost / Total lifespan
Test your knowledge on depreciation with this quiz! Learn about the definition, types, formula, and methods of depreciation in accounting. Find out the reasons for depreciation and expand your understanding of this important concept.
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