Which of the Following Statements Is True with Regard to Depreciation

question 110

Multiple Choice

Which of the following statements is true with regard to depreciation expense?

• A) Different companies in the same industry always depreciate similar assets by the same methods.
• B) A company using straight-line will show a smaller book value for assets than if the same company uses double-declining-balance.
• C) Choosing double-declining-balance over straight-line will produce a greater total depreciation expense over the asset's life.
• D) Although their opinions may differ, managers should choose the allocation method (straight-line, accelerated, or units-of-production) that best matches expenses with revenues.

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Definitions:

Cultural Relativism

A concept in anthropology that holds the belief that a person's beliefs, values, and practices should be understood based on that person's own culture, rather than judged against the criteria of another culture.

Moral Isolationism

The belief that one cannot or should not make moral judgments about the practices of cultures other than one's own.

Historical Periods

Distinct phases or eras in history categorized by significant events or developments, such as technological advancements, cultural shifts, or political transformations.

Metaethics

The branch of philosophy that analyzes the meaning and nature of moral terms, judgments, and arguments.