Under What Conditions Would a Company Most Likely Adopt the Double-Declining-Balance

question 40

Multiple Choice

Under what conditions would a company most likely adopt the double-declining-balance method for financial reporting?

• A) They have high technology, robotic equipment in their plant that have a long usable life.
• B) They have a fleet of trucks where repair costs increase annually as the fleet ages.
• C) They expect the asset to lose its value more rapidly in the first few years of its life.
• D) They expect the asset to lose its value in a huge portion after some years of its use.

---

Definitions:

Undernutrition

A condition resulting from insufficient intake of nutrients, leading to health issues like stunted growth, weakness, and impaired immunity.

Male Climacteric

The period of physical and psychological change relating to the male reproductive system that occurs during late middle age.

Reproductive System

A collection of internal and external organs in both males and females that work together for the purpose of procreating.

Lead Poisoning

Lead poisoning is a medical condition caused by exposure to lead, leading to health problems like damage to the brain and nervous system.