The Straight-Line Method Is Frequently Used to Amortize Non-Refundable Rental

question 33

Multiple Choice

The straight-line method is frequently used to amortize non-refundable rental payments made in advance on leased assets because:

• A)It is less complex, therefore, less costly.
• B)IFRS requires that it be used in all situations.
• C)It is more theoretically sound.
• D)The interest method may result in unreliable amounts being recognized as expense.

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Definitions:

Casual

something done without much thought or premeditation, often reflecting a relaxed or informal nature.

Formal

Relating to or involving the outward form or structure of something, often characterized by strict or established conventions or procedures.

"Me"

A term that refers to the self as perceived from an internal perspective, including one's own thoughts, feelings, and consciousness.