When Calculating Declining Balance Depreciation,the Straight-Line Rate Was Used Instead

question 104

Multiple Choice

When calculating declining balance depreciation,the straight-line rate was used instead of double the straight-line rate.In the first year of ownership,this error would cause:

• A)the period end assets to be overstated.
• B)the period's depreciation expense to be overstated.
• C)the period end assets to be understated.
• D)None of these is correct.

---

Definitions:

Generalization

Drawing a conclusion about a certain characteristic of a population based on a sample from it.

Logical Support

The provision of reasons or evidence to justify a claim or argument.

Opinion Reasonable

A viewpoint that is supported by logic and evidence, making it sound and acceptable.

Rationalization

The process of offering a logical or reasonable explanation for behaviors or attitudes that might otherwise appear irrational.