JFS Co Changed from Straight-Line to DDB Depreciation

question 87

Multiple Choice

JFS Co. changed from straight-line to DDB depreciation. The journal entry to record the change includes:

• A)A credit to accumulated depreciation.
• B)A debit to accumulated depreciation.
• C)A debit to a depreciable asset.
• D)The change does not require a journal entry.

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Definitions:

Lending Criteria

The standards and requirements a lender uses to evaluate the creditworthiness of a potential borrower.

Debt Financing

The method of raising capital through the sale of bonds, bills, or notes to individuals or institutional investors which must be repaid at a future date.

Choosing a Lender

The process of evaluating and selecting a financial institution or other entity that offers loans, considering factors like interest rates, terms, and conditions.

Investor

An individual or organization that commits capital with the expectation of receiving financial returns.