Which of the Following Statements Is Correct

question 85

Multiple Choice

Which of the following statements is correct?

• A)Companies will change the method of depreciating assets from one year to the next to reflect usage of an asset.
• B)Companies can maximize net income in the first year of an asset's life by selecting the double-declining-balance method rather than the straight-line depreciation method.
• C)Companies can use one method of depreciation for some of their long-lived productive assets but then use a different method for another group or type of long-lived productive assets.
• D)Companies can minimize an asset's book value in the first year of use by selecting the straight-line depreciation method rather than the double-declining-balance method.

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Definitions:

Standard Deviation

A statistic that measures the dispersion or spread of a set of data points relative to its mean.

Mean

The average of a set of numbers, calculated by dividing the sum of these numbers by the count of the numbers.

Random Variable

A variable whose possible values are numerical outcomes of a random phenomenon.

Standard Deviation

An indicator that quantifies the extent to which values in a collection differ from the average, showcasing the degree of spread or divergence among the data points.