If a Company Owns a Truck for Five Years, It

question 26

True/False

If a company owns a truck for five years, it will have higher depreciation expense every year it owns the truck if it uses the double declining balance method than if it uses the straight-line method.

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Definitions:

Brokerage Fees

Charges imposed by a broker for acting as the intermediary in facilitating transactions, such as buying or selling securities.

Equity Method

An accounting technique used to record investments in associate companies where the investor has significant influence but not full control.

Cash Dividend

A payment made by a company out of its profits to shareholders, usually in the form of cash.

Common Shares

Equity securities that represent ownership in a corporation, providing voting rights and a share in the company's profits via dividends.