Which of the Following Statements Is Not True

question 18

Multiple Choice

Which of the following statements is not true?

• A)The depreciation method and the period of time selected to depreciate an asset can have a significant influence on income.
• B)There are many depreciation methods.
• C)The depreciation methods that recognize a large amount of depreciation in the later years of an asset's life are conservative.
• D)The straight-line depreciation method recognizes depreciation in equal amounts over each year of the life of the asset.
• E)There is sometimes a material difference in the lives used for depreciation between firms.

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Definitions:

Fixed Stream

A Fixed Stream is a type of investment return that provides a consistent, pre-determined series of payments over a specified period of time.

Financial Asset

Any asset that is cash, an ownership interest in an entity, or a contractual right to receive or deliver cash or another financial instrument.

Debt Securities

Financial instruments representing a loan made by an investor to a borrower, typically involving periodic interest payments and the return of the principal at maturity.

Life Insurance Reserves

Funds that life insurance companies are required to set aside to ensure they can meet future obligations to policyholders.