Although Depreciation Expense and the Carrying Amount of Property, Plant

question 53

Multiple Choice

Although depreciation expense and the carrying amount of property, plant and equipment may be different in one or more periods because of the choice of depreciation methods, in total, over the life of the assets, there is no difference. This is called

• A) difference in assumptions.
• B) permanent difference.
• C) timing difference.
• D) irrelevant differences.

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Definitions:

Enforceable

Capable of being imposed or complied with; in legal context, describes a contract or provision that can be legally executed or acted upon.

Void Contract

A contract that lacks legal validity and enforceability from the outset, meaning it has no legal effect and cannot be enforced by either party.

Infant

A very young child, especially one newly or recently born.

Illegal

Illegal refers to actions or activities that are prohibited by law or statute.