Question

7 - Under which one of the following method, the rate of depreciation is charged at...

7 - Under which one of the following method, the rate of depreciation is charged at the rate which is double or twice the straight line rate?

a. Partial Year depreciation

b. Double declining balance Method

c. Straight line method

d. Units of Production method

Q8 - Owners of preferred stock often do not have:

a. Preference to dividends

b. The right to sell their stock on the open market

c. Voting Rights

d. Ownership rights to assets of the corporation

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Answer #1

7.

Under Double declining balance Method, the rate of depreciation is charged at the rate which is double or twice the straight line rate.

Double declining depreciation rate = Straight line rate x 2

Correct option is (b)

8.

Owners of preferred stock often do not have Voting Rights , Only common stockholders have voting right.

Preferred stockholders have the Preference to dividend, The right to sell their stock on the open market and Ownership rights to assets of the corporation.

Correct option is (c)

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