Chapter 11 Depreciation and Amortization

The declining balance depreciation method provides the ___________ depreciation amount in the __________ of an asset's life

highest; early years

Which of the following bookkeeping accounts is used in accounting for amortization

Amortization Expense

What is the formula for calculating depreciation under the straight-line method

Cost - Salvage ÷ Useful Life = Annual Depreciation Expense

Assets that provide service of one year or longer are called

fixed assets

Which of the following is a tangible asset

guestroom furniture

Depreciation is the process that allocates the cost of a(n) _______________ over its useful life

tangible capital asset

1. Amortization is the process that allocates the cost of assets

that have no physical structure, but will last for more than one year