Which of the Following Is Not an Acceptable Method of Depreciation

question 134

Multiple Choice

Which of the following is not an acceptable method of depreciation for financial statement purposes in Canada?

• A)Straight-line
• B)Increasing-balance
• C)Diminishing-balance
• D)Units-of-Production

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Definitions:

Inefficient

A situation where resources are not used in the most effective way, leading to potential waste or lost opportunities.

Externalities

Costs or benefits of a market activity borne by a third party; externalities can be either positive or negative.

Pigovian Taxes

Taxes imposed on activities that generate negative externalities, aiming to correct market inefficiencies and reduce unwanted behaviors.

Regulatory Policies

Rules or guidelines issued by governmental agencies to control or direct economic or social activities.