Straight-Line Depreciation Is Used in the First Year When Double-Declining-Balance

question 134

Multiple Choice

Straight-line depreciation is used in the first year when double-declining-balance should be used.This error would cause:

• A)the period's net income to be overstated.
• B)the period's net income to be understated.
• C)the period end assets to be understated.
• D)None of these are correct.

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Definitions:

Sampling Distribution

The arrangement of probabilities for a specified statistic, coming from a randomly chosen sample.

Sample Proportion

The fraction of the total sample that represents a particular trait or characteristic.

Normal Distribution

A probability distribution that is symmetric around the mean, showing that data near the mean are more frequent in occurrence than data far from the mean.

Sample Size

The number of individual observations or elements taken from a population to form a sample for the purpose of statistical analysis.