Which of Following Is Not a Similarity in the Accounting

question 6

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 balance sheet.
• 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:

Criminal

Pertaining to or involving crimes, describing actions that are against the law.

Liability

A financial obligation or amount that an individual or entity owes to another.

Misrepresented Authority

An instance where someone incorrectly asserts or implies they have the power to act on behalf of another party, potentially leading to binding agreements or legal consequences.

Personal Liability

Personal liability means an individual's legal responsibility to fulfill debts or obligations, which can extend to their personal assets.