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Answer:
the net book value of the asset halfway through its useful life will be less than if straight-line depreciation is used.
Explanation:
Let me use an example to illustrate this.
An asset has a useful life of 4 years. It costs $1000. It has a salvage value of 0
If the straight line depreciation method is used , the depreciation expense every year = $1000/ 4 = $250
The net book value halfway through its useful life = $1000 - ($250 x 2) = $500
If double declining method is used, the depreciation expense in the first year would be = 2/4 x $1000 = $500
The net book value at the beginning of year 2 = $1000 - $500 = $500
Depreciation expense in year 2 = 2/4 x $500 = $250
The net book value at the beginning of year 3 = $500 - $250 = $250
We can see that the net book value halfway through the useful is lower when double declining depreciation method is used
Answer:
Facilitator
Explanation:
Facilitators manage the meeting process.
Hope that helps!
Answer:
The CEO may decrease the firm's financial leverage, thus lowering the firm's total leverage.
Explanation:
Earnings per share is defined as the amount that is earned per unit of a companie's share in a particular period.
When there is variability in EPS of a company investors tend to lose confidence in performance of the company.
This is because positive performance in one period may not be sustained in the next period.
In order to reduce variability the CEO may decrease the firm's financial leverage, thus lowering the firm's total leverage.
Leverage is the use of debt to buy more assets. Reducing high leverage of the company will reduce the amount the company is obligated to pay other parties. So earning are not affected by debt repayment.
This will reduce variability in EPS.