Regarding Depreciation

question 224

Multiple Choice

Regarding depreciation,

• A) External auditors select the method believed to be most appropriate and consistent with other companies in the same industry.
• B) The income statement is impacted by depreciation through the accumulated depreciation account, and the statement of financial position is impacted by depreciation expense.
• C) Once a company chooses a depreciation method, it should apply the same method consistently over the entire useful life of the asset.
• D) All of these answer choices are correct.

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