A Company Should Choose a Depreciation Method That

question 174

Multiple Choice

A company should choose a depreciation method that

• A)best allocates the original cost of the asset to the periods benefited by the use of the asset.
• B)saves the most taxes.
• C)minimizes net income.
• D)shows the highest amount of net income.

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Definitions:

Independent Regulatory Commissions

Federal agencies created by Congress to regulate important areas of the nation's economy, designed to be independent from executive control.

Political Pressure

Influence or persuasion exerted by interest groups, political parties, or the public to achieve a desired political or policy outcome.

Civil Service

A sector of government composed mainly of career bureaucrats hired on professional merit rather than appointed or elected, whose role is to implement government policy.

Pendleton Act

A United States federal law enacted in 1883 which established that positions within the federal government should be awarded on the basis of merit instead of political affiliation.