Use of the Double-Declining Balance Method

question 21

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.

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Definitions:

Control Variable

A variable that is kept constant during a scientific experiment to ensure that any changes in the outcome can be attributed to the variables being tested.

Confounding Variable

A variable that influences both the dependent variable and independent variable, causing a spurious association.

Dependent Variable

The variable in an experiment that is expected to change as a result of manipulations of the independent variable.

Positive Correlation

An association between increases in one variable and increases in another—or between decreases in one and in another.