If the 150% Declining Balance Method Is Being Used and an Asset

question 47

Multiple Choice

If the 150% declining balance method is being used and an asset has a useful life of 20 years.What is the depreciation rate?

• A)7.5%.
• B)10%.
• C)15%.
• D)150%.

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Definitions:

Net Loss

Occurs when total expenses exceed total revenues during a specific period of time, indicating negative profitability.

Liabilities

Financial obligations or debts owed by a company to others, which must be settled over time by transferring economic benefits.

Expenses

The costs incurred in the process of generating revenue, such as rent, utilities, and salaries.

Revenues

The income generated from normal business operations and includes discounts and deductions for returned merchandise. It serves as the starting point for determining net income.