Which of the Following Statements Is Most Correct

question 1

Multiple Choice

Which of the following statements is most correct?

• A) The reason why the U.S. Congress allows business to use MACRS depreciation as opposed to conventional
• methods is to reduce the business tax burden over the project life.
• B) Under the declining balance depreciation system, it is always desirable to switch to straight-line
• depreciation.
• C) When determining the cost basis for an asset's depreciation, you must include all the costs that were
• incurred to keep the asset in operable condition.
• D) The main reason why a typical firm may use a straight-line depreciation method in reporting an income to
• outside investors (as opposed to any other accelerated tax depreciation methods) is to abide by the accounting
• principle-that is to report the true cost of doing business.

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Definitions:

Eustress

A positive form of stress having a beneficial effect on health, motivation, performance, and emotional well-being.

Conflict

The psychological stress occurring when a person has to choose between different and incompatible or opposing goals.

Pressure

The force applied perpendicular to the surface of an object per unit area over which that force is distributed, often measured in units such as Pascal or psi.

Cognitive Dissonance

The psychological discomfort experienced when holding two or more conflicting cognitions, beliefs, or values simultaneously.