Which of the Following Statements About Depreciation Is Correct? a Company

question 24

Multiple Choice

Which of the following statements about depreciation is correct? A company:

• A)must use the same depreciation method for all classes of assets consistently over time.
• B)may use different methods of depreciation for any class of asset and may change methods as it sees fit.
• C)must use straight-line depreciation for tax reporting.
• D)may use different depreciation methods for different classes of assets from one year to the next.

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Definitions:

Literature And History

The study and interpretation of written works and past events, exploring how narratives, themes, and contexts reflect and shape societies.

Restructuring

In cognitive therapy, it refers to the process of identifying and changing irrational or maladaptive thoughts that lead to negative emotions.

Functional Fixedness

A cognitive bias that limits a person to using an object only in the way it is traditionally used, preventing them from seeing alternative uses.

Mental Sets

The tendency to approach situations in a certain way because that method has worked in the past.