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:

Trimester

One of the three roughly three-month periods into which human pregnancy is divided, each with distinct developmental milestones.

Infant Mortality Rate

The number of babies under age 1 who die per 1,000 live births in a given year.

Live Births

The births of babies who show any sign of life, such as breathing, heartbeat, or movement, regardless of gestational age.

Expenditure

The act of spending or using money for goods, services, or other purposes.