Chapter 5

Question 1

A depreciation method that recognizes depreciation each year by multiplying a rate

Answer 1

double-declining-balance depreciation method

Question 2

A depreciation method in which rates determine by the IRS

Answer 2

Modified Accelerated Cost Recovery system(MACRS)

Question 3

A depreciation method that recognize an equal amount of depreciation each year

Answer 3

Straight-line depreciation method

Question 4

If an asset has a five-year life, the sum- of the years’- digit is computed

Answer 4

sums-of-the year’s digit