Which One of the Following Statements Is True

question 103

Multiple Choice

Which one of the following statements is true?

• A)Financial statement readers cannot determine whether the depreciation method used by a company is appropriate.
• B)Financial statement readers can determine the useful lives of assets depreciated during the reported period.
• C)Financial statement readers cannot determine the depreciation expense for the reported period.
• D)Financial statement readers can accurately estimate the effect an alternative depreciation method would have on income.

---

Definitions:

Vicarious Liability

A legal principle where one party is held liable for the actions of another party, such as an employer being responsible for the acts of its employees.

Strict Liability

A legal principle where responsibility for damages is assigned without the need to prove negligence or fault.

Duty of Care

A legal obligation imposed on an individual requiring adherence to a standard of reasonable care while performing any acts that could harm others.

Vicarious Liability

A legal principle where one party is held liable for the actions of another party, typically in employer-employee relationships.