If Technology Changes Rapidly, a Firm Should

question 128

Multiple Choice

If technology changes rapidly, a firm should

• A) expense plant asset immediately because of the uncertainty of future benefits.
• B) depreciate plant assets over long periods of time.
• C) consider an accelerated rate of depreciation.
• D) use the straight-line method of depreciation as it is the easiest.

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Definitions:

Enforceable Contract

A legally binding agreement that can be upheld and enforced in a court of law.

Oral Contract

A contract wherein terms are agreed upon through spoken communication, which can be legally binding if it meets certain criteria, despite the lack of physical documentation.

Prove

To establish the truth or validity of something through evidence or argument.

Parol Evidence

Oral or verbal evidence that is not included in the written contract, often discussed in the context of disputes about what the parties agreed upon.