Many Companies That Use the Declining-Balance Method of Depreciation Switch

question 44

Multiple Choice

Many companies that use the declining-balance method of depreciation switch to the straight-line method at what point in the life of a depreciable asset?

• A)never, as one method must be applied consistently throughout the life of an asset
• B)in the last quarter of the life of the asset
• C)when the accelerated depreciation exceeds the straight-line depreciation
• D)midpoint in the life of the asset

---

Definitions:

Pledges

Commitments made by individuals or organizations to donate a specified amount of money or assets.

Telethon Event

A televised fundraising event that encourages viewers to donate money, often for charitable purposes or emergency relief efforts.

Uncollectible

Accounts receivable that are considered unlikely to be collected, representing potential financial losses for a company.

Accounting Standards Update No. 2014-09

Accounting Standards Update No. 2014-09 is a comprehensive new revenue recognition standard issued by FASB, altering the way businesses recognize revenue from contracts with customers.