The Assumption Underlying the Reducing Balance Method of Depreciation Is

question 45

Multiple Choice

The assumption underlying the reducing balance method of depreciation is:

• A) the asset makes the same contribution to income in each year of its life.
• B) the contribution the asset makes to income depends on its usage.
• C) the asset makes a higher contribution to income in the earlier years of its life.
• D) the asset makes a lower contribution to income in the earlier years of its life and a higher contribution in the later years.

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Definitions:

Population Cycle

The fluctuation in population numbers over a period of time due to factors like food availability, predation, and disease.

Population Behaviours

The collective actions and patterns of behaviour exhibited by individuals within a population, influencing and being influenced by social and environmental factors.

Density-dependent

Factors whose effects on the size or growth of the population vary with the population density.

Intrinsic Rate

The maximum rate of growth of a population under ideal conditions, reflecting its reproductive potential and sustainability.