Which Statement Concerning the Diminishing-Balance Method of Depreciation Is True

question 32

Multiple Choice

Which statement concerning the diminishing-balance method of depreciation is true?

• A) It charges the same amount of depreciation each period.
• B) It applies a declining percentage factor to the asset's original cost.
• C) It is also known as the units-of-production method.
• D) It is an appropriate method when proportionately more of the asset's benefits are consumed in the early years of its life.

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Definitions:

Entire Economy

The entire economy refers to the sum total of all economic activities and interactions within a country or region.

Scientific Method

The procedure for the systematic pursuit of knowledge involving the observation of facts and the formulation and testing of hypotheses to obtain theories, principles, and laws.

Economists

Professionals who study and analyze economies, including their production, distribution, and consumption of goods and services.

Hypotheses

Proposed explanations made on the basis of limited evidence as a starting point for further investigation.