Which of the following is NOT a method of calculating depreciation?
Practice Questions
1 question
Q1
Which of the following is NOT a method of calculating depreciation?
Straight-Line Method
Declining Balance Method
Units of Production Method
Capitalization Method
The Capitalization Method is not a recognized method of calculating depreciation.
Questions & Step-by-step Solutions
1 item
Q
Q: Which of the following is NOT a method of calculating depreciation?
Solution: The Capitalization Method is not a recognized method of calculating depreciation.
Steps: 5
Step 1: Understand what depreciation is. Depreciation is the process of allocating the cost of a tangible asset over its useful life.
Step 2: Learn about common methods of calculating depreciation. The most recognized methods include: Straight-Line Method, Declining Balance Method, and Units of Production Method.
Step 3: Identify the methods listed in the question. Check if 'Capitalization Method' is one of the recognized methods.
Step 4: Confirm that the Capitalization Method is not a standard method for calculating depreciation.
Step 5: Conclude that the Capitalization Method is the answer to the question as it is NOT a method of calculating depreciation.
