The double-declining-balance and straight-line depreciation methods Produce the same total depreciation over an asset's useful life.
- Two of the four depreciation methods permitted by US generally accepted accounting standards are the straight-line and double-declining-balance depreciation procedures (GAAP).
- The sum of the years' digit and units of production are the other two techniques. By deducting the salvage value from the asset's purchase price and either dividing the depreciable amount by the number of years or applying a preset rate to the depreciable amount, the straight-line method is derived.
- The depreciation rate is calculated using the double-declining-balance technique by dividing 100 percent by the asset's useful life in years, then multiplying the result by two.
- The diminishing amount is then used to calculate depreciation expenditure until only the salvage value is left. They therefore result in the same depreciation over the course of the asset's useful life.
<h3>Is double declining balance a method of straight-line depreciation?</h3>
- The straight-line depreciation technique, another and arguably even more frequent type of depreciation, depreciates an asset's value at a rate that is half that of the DDB depreciation method.
<h3>What is double declining balance depreciation method?</h3>
- A type of accelerated depreciation method called the double-declining balance method doubles the rate at which an asset's value depreciates compared to the straight-line approach.
- Accelerated depreciation refers to the process of depreciation that occurs twice as quickly as the straight-line method.
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Answer:
Liability
Explanation:
Assets are resources controlled by an entity as a result of a past event, for which future economic benefits flow to the entity.
Liabilities on the other hand are current obligations of an entity as a result of a past event for which future economic benefits are expected to flow our of the entity.
Therefore, when a company has a current obligation to make a future payment to their supplier due to a shipment of supplies that were received last week, the company would record this transaction with an increase to an asset account ( inventory or fixed asset for the item received) and a liability account due to the obligation to make future payments.
Answer:
The question is incomplete;
a. The required return on Portfolio P would increase by 1%.
b. The required return on both stocks would increase by 1%.
c. The required return on Portfolio P would remain unchanged.
d. The required return on Stock A would increase by more than 1%, while the return on Stock B would increase by less than 1%.
e. The required return for Stock A would fall, but the required return for Stock B would increase.
The answer is a. The required return on Portfolio P would increase by 1%.
Explanation:
Answer:
e. learning curve
Explanation:
The learning curve is the curve which shows the progress of an individual with respect to his or her learning i.e how much quickly someone learns. It shows the graph of an individual in terms of new skills, qualities of performing a task
Since in the given scenario, the Lauro estimated that the proposed time would took 10% less time and money which reflects the learning curve of her
Answer:
Option B $1.03
Explanation:
First lets calculate present value = cash flow(PVAF, life, rate) where PVAF = present value annuity factor
= 15(PVAF, 10, 5 years)
from the annuity table
Present value = 15 * 3,790 = $56.8618 million
The decrease in Present value will be $56.8618 million
Decrease in price = present value/number of share = 56.8618/66 = 1.033851 approx $1.03
