One Difference Between the Double-Declining-Balance Method and the Straight-Line Method

question 246

Multiple Choice

One difference between the double-declining-balance method and the straight-line method is that the double-declining-balance method:

• A)reduces book value below residual value.
• B)does not consider the useful life of the asset in the calculation of depreciation.
• C)cannot be used for tax purposes.
• D)uses book value instead of depreciable cost in the calculation of depreciation.

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Definitions:

Alternative Hypothesis

A statement that directly contradicts the null hypothesis by stating there is a statistically significant effect or difference.

Null Hypothesis

A statistical hypothesis that assumes no significant difference or effect, serving as a default position that there is no relationship between two measured phenomena.

Alternative Hypothesis

A hypothesis that contradicts the null hypothesis, typically representing a new theory or perspective.

Null Hypothesis

A statistical hypothesis that assumes no significant difference or effect exists among the variables being studied.