Which of Following Is Not a Similarity in the Accounting

question 48

Multiple Choice

Which of following is not a similarity in the accounting treatment for depreciation and cost depletion?

• A) The estimated life is based on economic or productive life.
• B) Assets subject to either are reported in the same classification on the statement of financial position.
• C) The rates may be changed upon revision of the estimated productive life used in the original rate computations.
• D) Both depreciation and depletion are based on time.

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Definitions:

Public Corporation

A company whose shares are publicly traded on a stock exchange and are owned by a wide range of investors.

Government

The system or group of people governing an organized community, often a state, and the mechanism through which political authority is exercised.

Law

A system of rules and guidelines, usually enforced through a set of institutions, that govern behavior and maintain order in a society.

Vroom's Expectancy Theory

A theory that proposes an individual's motivation is affected by the expectation that one's effort will lead to desired performance and the value of the reward associated with that performance.