Which One of the Following Statements Is Not Correct

question 67

Multiple Choice

Which one of the following statements is not correct?

• A)A change from an inappropriate accounting principle to a proper one should be accounted for as an accounting error.
• B)Use of straight-line depreciation gives a higher total expense than accelerated methods over the total useful life of the asset.
• C)Assets purchased on the 14th of the month may be depreciated from the first of the month for practical reasons.
• D)Depreciation accounting is a process of allocation of periodic expense, rather than one of asset valuation.

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Definitions:

Reasonable Care

The degree of care that a reasonably prudent person would have used under the same circumstances and conditions.

Liable

Liable refers to the state of being legally responsible for something, typically involving the obligation to compensate for damage or loss caused.

Gross Negligence

Very great negligence.

Proven Negligence

A situation where it has been established that a party failed to exercise a level of care that someone of ordinary prudence would have in a similar situation, resulting in harm to another.