2026 CORRECT RESPONSE ANALYSIS
RESOURCE PACK
◉ What rate do we assume when we use the declining balance
method of depreciation. Answer: .40
◉ What are the 4 methods of calculating depreciation. Answer:
Straight line method
Units of Output
Sum of years digits
Double declining method
◉ Acquisition cost-Accumulated depreciation. Answer: Book value
◉ What are the accelerated methods of depreciation. Answer:
Double declining method
Sum of years digits
, ◉ Which depreciation method establishes the same depreciation
expense per year. Answer: Straight line method
◉ Which depreciation method establishes the same depreciation
expense per use. Answer: Units of output method
◉ Acquisition cost-Salvage value/Useful life in years. Answer:
Annual depreciation expense
◉ Acquisition cost-Salvage value/Units of output. Answer:
Depreciation expense per use
◉ Journal Entry: purchase of goods to sell on account w/ a freight
charge. Answer: Debit:
merchandise purchases
freight in
Credit:
Cash