25.Which of the following items does not affect the calculation of depreciation expense?
A.Economic benefits generated by the asset
B.Useful life of the asset
C.Residual value of the asset
D.Capitalized cost of the asset
26.Which of the following statements is correct when the straight-line method is used to compute depreciation?
A.The carrying value of an asset is a constant amount during the asset's useful life
B.Accumulated depreciation is a constant amount during the asset's estimated useful life
C.Depreciation Expense is a constant amount each year
D.The book value of an asset is an increasing amount during the asset's useful life
27.One difference between the double-declining-balance method and the straight-line method is that the double-declining-balance method:
A.reduces book value below residual value.
B.does not consider the useful life of the asset in the calculation of depreciation.
C.cannot be used for tax purposes.
D.uses book value instead of depreciable cost in the calculation of depreciation.
28.Why don't all companies use the same depreciation method?
A.US income tax regulations require that a company use the same depreciation method for both financial reporting and income taxes.
B.Different depreciation methods might better reflect the pattern in which assets' economic benefits are used.
C.All companies do use the same depreciation method.
D.Only large companies are allowed to use some of the more complicated depreciation methods.
25.Which of the following items does not affect the calculation of depreciation expense?
A.Economic benefits generated by the asset
B.Useful life of the asset
C.Residual value of the asset
D.Capitalized cost of the asset
26.Which of the following statements is correct when the straight-line method is used to compute depreciation?
A.The carrying value of an asset is a constant amount during the asset's useful life
B.Accumulated depreciation is a constant amount during the asset's estimated useful life
C.Depreciation Expense is a constant amount each year
D.The book value of an asset is an increasing amount during the asset's useful life
27.One difference between the double-declining-balance method and the straight-line method is that the double-declining-balance method:
A.reduces book value below residual value.
B.does not consider the useful life of the asset in the calculation of depreciation.
C.cannot be used for tax purposes.
D.uses book value instead of depreciable cost in the calculation of depreciation.
28.Why don't all companies use the same depreciation method?
A.US income tax regulations require that a company use the same depreciation method for both financial reporting and income taxes.
B.Different depreciation methods might better reflect the pattern in which assets' economic benefits are used.
C.All companies do use the same depreciation method.
D.Only large companies are allowed to use some of the more complicated depreciation methods.
