Companies with the Same Asset May Report Different Amounts of Depreciation

question 133

Multiple Choice

Companies with the same asset may report different amounts of depreciation in a given year for all of the following reasons,except:

• A)They use different residual values.
• B)They use different estimated useful lives.
• C)They use different depreciation methods.
• D)They are in different industries.

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Definitions:

Absolute Advantage

The ability of a country, individual, company, or region to produce a good or offer a service at a lower cost per unit than the cost at which any other entity produces that good or offers that service.

Production

The process of creating goods and services by combining labor, materials, and technology.

Kegs

Large barrels used to store and transport liquids, especially alcoholic beverages such as beer.

Pizzas

A popular dish made from yeasted flatbread typically topped with tomato sauce, cheese, and various toppings and then baked.