Explain why activity based method is more appropriate to calculate depreciation than straight line method

Q: The method of depreciation which is also known as Accelerated depreciation method is a. Diminishing…

A: Depreciation expense is the reduction in the value of assets due to the wear and tear on that asset.…

Q: Under what conditions is the use of the straight-line depreciation method most appropriate?

A: There are different methods of depreciation and one such method is straight line method of…

Q: Explain why depreciation is provided?

A: The depreciation expense is charged on fixed assets as reduced value of the fixed asset with usage…

Q: What information is found on the depreciation schedule? How can this information be verified?

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Q: Explain the straight-line method of depreciation with an example?

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Q: Why are time-based depreciation methods used more frequently than activity-based methods?

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Q: written down value method is more appropriate than the straight-line method

A: Under written down value method, accelerated depreciation is charged in initial years of useful life…

Q: at is the difference between depreciation and im

A: Depreciation: Depreciation is an accounting methodology of allocating the price of a tangible or…

Q: What is the purpose of depreciation

A: Depreciation is an accounting system for spreading out the expense of a tangible item over the…

Q: Which one of the following is not one of the factors in computing depreciation? Cost price…

A: Depreciation means the loss in value of assets because of usage of assets , passage of time or…

Q: The factor that is not relevant in computing depreciation is

A: Depreciation is an accounting method used to allocate the cost of a tangible or physical asset over…

Q: Instead of valuing assets, depreciation is a cost allocation procedure. This statement should be…

A: This question tells about depreciation is a cost allocation procedure:

Q: Is there any evidence to suggest that the straight-line depreciation approach is more often used

A: The question tells about the straight-line depreciation approach is more often used

Q: erent methods of calculating depreciation.

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Q: Should the engineers be able to assess the reality of depreciating fixed assets?

A: A company should assess the position of its fixed asset and check for its impairment if condition…

Q: Explain different types of depreciation methods with illustrative examples.

A: Depreciation is the allocation of cost of asset over the useful life of the asset.  Some methods of…

Q: Please explain double-declining method depreciation. When is this the preferred method to figure…

A: The double-declining balance method is a method to calculate depreciation. Depreciation as per…

Q: Is residual value deductible when using accelerated method of depreciation>

A: The accelerated method of depreciation includes double declining balance method, 150% declining…

Q: Explain the similarities and differences among depreciation, depletion, and amortization. Provide…

A: The depreciation, depletion and amortisation are the various techniques used by company to record…

Q: A method that excludes residual value from the base for the depreciation calculation

A: Depreciation base:   Depreciation base is the amount that is allocated over the estimated service…

Q: Briefly differentiate between the straight-line depreciation method and accelerated depreciation…

A: Depreciation: The depreciation is the expense which is debited to the income statement in the ratio…

Q: What is meant by straight line method if charging depreciation?

A: Depreciation: Depreciation refers to the reduction in the monetary value of a fixed asset due to its…

Q: What are the three methods to account for depreciation? What are the differences between the three…

A: Methods of depreciation Straight line method Declining/ Diminishing balance method Sum-of-the-year…

Q: What are some factors that could explain the predominant use of the straight-line depreciation…

A: Straight-line Depreciation:Under the straight-line method of depreciation, the same amount of…

Q: How do you know the ratesw on straight line depreciation?

A: Solution:- The following way to find depreciation rates on straight line depreciation method as…

Q: (d) On what basis should management select from these two methods to depreciate the machine? Justify…

A: The management should opt for reducing balance method of depreciation for the above scenario: This…

Q: What is the difference between depreciation and depletion?

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Q: Which of the following depreciation methods most closely approximates the method used to deplete the…

A: Normally Depletion method of depreciation is used for natural resource. Similar to any other…

Q: Under what circumstances will you consider the reducing balance method as the most appropriate…

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Q: Explain what complications might arise in trying to compare the results of straight-line…

A: Depreciation is defined as a reduction in the value of an asset that occurs over time as the assets…

Q: How is the straight-line depreciation calculated?

A: Definition: Straight-line depreciation method: The depreciation method which assumes that the…

Q: Define straight-line depreciation method

A: Depreciation means fall in value of depreciable assets with passage of time. There are many methods…

Q: How do we calculate straight line depreciation?

A: Depreciation is considered as an expense charge on the value of the Asset. It can be calculated by…

Q: Explain the similarities in and differences among depreciation, depletion, and amortization.

A: Depreciation:  It refers to the reduction in the monetary value of fixed tangible assets over its…

Q: Distinguish between declining balance method of depreciation and double declining balance method of…

A: Depreciation is the reduction in the value of asset over its useful life due to reasons such as…

Q: Depreciation is considered to be a straight-line metho.

A: We can simply define the payback period as the length of time a cash flow takes to pay back the…

Q: Explain straight line depreciation formula?

A: Depreciation:   Depreciation refers to the reduction in the monetary value of a fixed asset due…

Q: Give reasons why depreciation methods are useful?

A: Depreciation: It is the reduction in the value of an asset due to factors like normal usage and…

Q: What is Depreciation calculation?

A: Depreciation: Depreciation Cost is the cost that is allocated over its life and it is charged as an…

Q: a. Under what conditions is the use of the straightline depreciation method most appropriate?b.…

A: a. Explain the condition under which the straight-line depreciation method is the most appropriate…