One Primary Reason Management May Choose a Particular Depreciation Method

question 34

Multiple Choice

One primary reason management may choose a particular depreciation method is:

• A)to save cash for the replacement of the plant asset.
• B)to avoid violation of debt covenants tied to net income.
• C)to decrease the cash flows of the company.
• D)to hide judgment errors that managers have made during the accounting period.

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Definitions:

Grammar

The set of structural rules governing the composition of clauses, phrases, and words in any given natural language.

Antecedent

An antecedent is a thing or event that existed before or logically precedes another, often used in grammar to refer to the noun to which a pronoun refers.

Pronoun

A word that takes the place of a noun, such as he, she, it, they, which can refer to people, places, or things.

Incorrect Tense

The use of a verb form that is not appropriate for the time frame or sequence of events discussed, leading to grammatical errors.