Double Declining-Balance Method Is Used in the First Year When

question 137

Multiple Choice

Double declining-balance method is used in the first year when straight-line should be used.This error would cause:

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

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Definitions:

Administrative Department

A division within a company or organization responsible for performing management and support duties, such as clerical work and maintaining records.

Catering Department

A division within a company or organization responsible for providing food services for events, meetings, or facilities.

Restaurant

A business establishment that prepares and serves meals, snacks, and beverages to customers.

Departmental Gross Profit

The difference between sales and the cost of goods sold for a specific department, highlighting its profitability.