Use of the Double-Declining Balance Method

question 18

Multiple Choice

Use of the double-declining balance method

• A) results in a decreasing charge to depreciation expense.
• B) means residual value is not deducted in computing the depreciation base.
• C) means the book value should not be reduced below residual value.
• D) All of these answer choices are correct.

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Definitions:

Less Than

A comparative term used to indicate that one quantity or number is smaller than another.

Z-scores

A numerical indicator showing how a specific value compares to the average of a set of numbers, expressed by how many standard deviations it is from the average.

Standard Normal Distribution

A normal distribution with a mean of 0 and a standard deviation of 1, used as a basis for comparison in statistical analysis.

Greater Than

A mathematical comparison indicating that one quantity is larger than another.