Which of the following is a common method for calculating depreciation?
Practice Questions
1 question
Q1
Which of the following is a common method for calculating depreciation?
Straight-Line Method
Declining Balance Method
Units of Production Method
All of the above
All of the above methods are common for calculating depreciation.
Questions & Step-by-step Solutions
1 item
Q
Q: Which of the following is a common method for calculating depreciation?
Solution: All of the above methods are common for calculating depreciation.
Steps: 5
Step 1: Understand what depreciation means. Depreciation is the process of allocating the cost of a tangible asset over its useful life.
Step 2: Learn about common methods for calculating depreciation. Some common methods include straight-line depreciation, declining balance depreciation, and units of production depreciation.
Step 3: Recognize that each method has its own way of calculating how much value an asset loses over time.
Step 4: Realize that the question is asking which method is common for calculating depreciation.
Step 5: Conclude that all the mentioned methods in the options are indeed common for calculating depreciation.
