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Answer the following questions to see what you've learned.

1.

You have set up a fixed asset with Declining-balance 1 as the depreciation method. Which of the following options best describes the Declining-balance 1 depreciation method?

Declining-balance 1 depreciates a fixed asset by the same amount each year.

Declining-balance 1 is an accelerated depreciation method that allocates the largest portion of the cost of an asset to the last years of its useful lifetime.

Declining-balance 1 is an accelerated depreciation method because it doubles the percentage that is used to depreciate the acquisition cost of a fixed asset.

Declining-balance 1 is an accelerated depreciation method that allocates the largest portion of the cost of an asset to the early years of its useful lifetime.

2.

You want to calculate depreciations for a machine based on its estimated production volume of one million units. To achieve this task, you set up the fixed asset with a User-defined depreciation method and create a depreciation table. Can you post the depreciations for the User-defined method to the general ledger?

Yes, but you must assign a second depreciation book to the asset with G/L integration enabled. On the line with the User-defined method, you must select the Copy to Other Depreciation Books field.

Yes, if the User-defined method is assigned to a depreciation book with G/L integration enabled.

Yes, user-defined depreciations are always posted to the general ledger.

No, you can never post user-defined depreciations to the general ledger. These depreciation amounts are only for analysis purposes.

You must answer all questions before checking your work.

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