Reference no: EM132992480

Problem 1: A variety of depreciation methods can be used to allocate the depreciable amount of an asset over its useful life. Which statement is incorrect?

a) Straight line depreciation results in a constant charge over the useful life if the assets residual value does not change.

b) The diminishing balance method results in a decreasing charge over the useful life.

c) The sum of year's digits method results in an increasing charge over the useful life.

d) The units of production method result in a charged based on the expected use or output.

Problem 2: The term "depreciable base," or "depreciation base," as it is used in accounting, refers to

a) The total amount to be charged (debited) to expense over an asset's useful life.

b) The cost of the asset less the related depreciation recorded to date.

c) The estimated market value of the asset at the end of its useful life.

d) The acquisition cost of the asset.