Which of the Following Statements About Depreciation Methods Is Not

question 93

Multiple Choice

Which of the following statements about depreciation methods is not correct?

• A)The amount of depreciation expense recorded in each year of an asset's life depends on the method that is used.
• B)Different depreciation methods can be used for different classes of assets provided the methods are used consistently over time so that financial statement users can compare results across periods.
• C)At the end of an asset's life,after it has been fully depreciated,the total amount of depreciation will equal the asset's depreciable cost.
• D)The amount of net income reported each year will be the same regardless of the depreciation method used.

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Definitions:

T Accounts

A visual representation used in accounting to depict debits and credits for individual accounts, resembling the letter "T".

Horizontal Analysis

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Income Statements

A financial statement that shows a company's revenues, expenses, and profit over a specific period.

Accounts Credited

Accounts that have been increased in a double-entry bookkeeping system due to the recording of revenues, gains, liabilities, or owner's equity.