Under What Conditions Would a Company Most Likely Adopt the Double-Declining-Balance

question 122

Multiple Choice

Under what conditions would a company most likely adopt the double-declining-balance method for financial reporting?

• A)The company has high technology,robotic equipment in its plant that becomes obsolete quickly and declines in utility to the company more rapidly in the early years of the assets' lives.
• B)The company wants to maximize its net income during the earlier years of the asset's life.
• C)The company wants to maximize the asset's book value in the earlier years of the asset's life.
• D)The company wants to maximize the total depreciation expense over the life of the asset.

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Definitions:

Correlation Coefficients

Statistical measures that describe the extent to which two variables change together, indicating the strength and direction of their relationship.

Weakest Degree

The minimum intensity or level at which a particular phenomenon or condition exists or is perceptible.

Random Sample

a sample that fairly represents a population because each member has an equal chance ofinclusion.

Representative of the Population

A sample group or individual characteristics that accurately reflect the larger population from which they're drawn.