_________________ of depreciation calculation accounts for the interest on investment?
Correct answer: D. Neither A. nor B.
- A. Straight line method
- B. Declining balance
- C. Both A. and B.
- D. Neither A. nor B.
Explanation
Straight-line and declining-balance methods allocate the equipment cost over its service life but do not include interest on invested capital. Interest is considered in methods such as the sinking-fund or present-worth approaches.
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