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Engineering Economy, 5/e
Leland Blank, Texas A&M University
Anthony Tarquin, University of Texas - El Paso

Depreciation Methods

Chapter Review: True or False Quiz

This online quiz contains 6 questions. Click on the button next to the selection that best answers the question. To review your results, click on the Submit Answers button displayed after that last question in the test. Good luck!



1

Depreciation is a reduction in value of an asset which reflects its actual usage during ownership.
A)TRUE
B)FALSE
2

Market value represents the remaining undepreciated investment on the books after the depreciation charges to date have been subtracted.
A)TRUE
B)FALSE
3

Recovery period refers to the depreciable life of an asset.
A)TRUE
B)FALSE
4

Although land is considered as real property, it is not depreciable.
A)TRUE
B)FALSE
5

The half-year convention assumes that assets are placed in service or disposed of at the end of the year.
A)TRUE
B)FALSE
6

Switching from declining balance depreciation to straight line depreciation is an inherent feature of the straight-line alternative (option) to the MACRS depreciation method.
A)TRUE
B)FALSE