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:

Reusable Goods

Products designed to be used multiple times, reducing waste and environmental impact compared to disposable items.

Nondisposable Goods

Products designed for long-term use and not intended to be thrown away after a few uses, such as appliances or furniture.

Durable Good

A type of goods that are not consumed all at once but rather used or consumed over a long period, such as appliances, furniture, and automobiles.

Obsolete

This term refers to products, services, or technologies that have become outdated and replaced by newer, more efficient alternatives.