Question

Declining balance, accounting method. Four different types to do accounting depreciation, accumulated.

a) True
b) False

Answer 1

The declining balance method is a false descriptor in the question; it's a single method that involves a constant depreciation rate leading to steadily decreasing but always positive values.

Step-by-step explanation:

The statement about the declining balance method having four different types to do accounting depreciation is false. The declining balance method is one of several methods used for calculating depreciation, and it involves a constant rate of depreciation applied to the asset's book value each year, resulting in depreciation amounts that decrease over time. The value of the asset under this method will not become negative; it will always be positive but will decrease steadily until the asset is fully depreciated or disposed of.