Which of the Following Statements Is not True

question 23

Multiple Choice

Which of the following statements is not true?

• A)CCA will be the same whether a company uses the straight-line, diminishing-balance, or units-of-production method.
• B)Cash flow will be affected by the use of different depreciation methods.
• C)Over the life of the asset, total depreciation expense will be the same whether a company uses the straight-line, diminishing-balance, or units-of-production method.
• D)The diminishing-balance depreciation method will result in lower net income compared to the straight-line depreciation method in the early years.

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Definitions:

Normative Influence

The impact others have on our behavior through norms or behaviors that are deemed acceptable by a group, leading individuals to conform in order to be liked or accepted.

Solomon Asch

A prominent psychologist known for his research on conformity, including his famous experiments demonstrating how people could be influenced to contradict their own accuracy for group consensus.

Halo Effect

The cognitive bias where the perception of one positive trait (such as attractiveness) leads to the unfounded assumption of other positive traits, such as intelligence or morality.

Rarity Principle

A concept in economics and marketing suggesting that rare or scarce items are perceived as more valuable.