One Difference Between the Double-Declining-Balance Method and the Straight-Line Method

question 136

Multiple Choice

One difference between the double-declining-balance method and the straight-line method is that the double-declining-balance method:

• A)takes book value below residual value.
• B)does not consider the useful life of the asset in the calculation of depreciation.
• C)cannot be used for tax purposes.
• D)uses book value instead of depreciable cost in the calculation of depreciation.

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Definitions:

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A type of life insurance policy offered to a group of people, usually employees of a company, that provides coverage at a reduced cost for the duration of employment.

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A type of insurance coverage that pays for medical and surgical expenses incurred by the insured, often provided as a workplace benefit.

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Financial programs established by employers to provide retirement income to employees, funded during their working years.