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:

Historical Precedent

Historical precedent refers to decisions or actions taken in the past that serve as a model or guide for how similar events are handled in the future.

Creativity Drivers

Elements or factors that stimulate creativity in individuals or groups, leading to the generation of innovative ideas or solutions.

Individual Creativity

The ability of a person to generate or recognize ideas, alternatives, or possibilities that may be useful in solving problems, communicating, and entertaining.

Team Creativity

The collective ability of a group to generate novel and useful ideas or solutions to problems.