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:

Replications

Repeating experiments or studies to ensure the results are consistent and reliable.

Null Hypothesis

A hypothesis that there is no significant difference or effect.

Alternative Hypothesis

In hypothesis testing, the hypothesis that proposes a difference or effect, contrasting the null hypothesis.

Interaction

The effect of two or more variables combined that is different from the effect of the variables individually.