Which of the Following Statements Is False

question 33

Multiple Choice

Which of the following statements is false?

• A)The book value at the end of an asset's useful life will be the same under all the depreciation methods allowed under GAAP.
• B)The balance in the accumulated depreciation account will be the same at the end of an asset's useful life under all the methods allowed under GAAP.
• C)Once a company selects a depreciation method,it must use this method for all depreciable assets.
• D)The annual depreciation expense and year-end book values will differ under the various depreciation methods over the life of the asset.

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Definitions:

Ability-to-Pay Principle

A tax principle suggesting that taxes should be levied according to an individual or entity's capacity to pay, generally implying that those with higher incomes should pay more tax.

Proportional Income Tax

A tax system where the tax rate remains constant regardless of the amount of income, thus taxing all income levels at the same percentage.

Horizontal Equity

The principle that individuals or entities in similar financial situations should be treated equally by the tax system or other public policies.

Tax Burdens

The total amount of taxes imposed on an individual or business by a government entity.