Which of the Following Statements Is Correct

question 34

Multiple Choice

Which of the following statements is correct?

• A)firms must use the same depreciation methods for tax and financial reporting
• B)return on assets based on reported values tends to be overstated
• C)all the assets a firm owns are reported on its balance sheet
• D)plant assets are reported at fair market value

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Definitions:

Intangible

Assets or properties that do not have physical substance, such as patents, copyrights, or brand reputation.

Material Facts

Important facts that could influence a decision maker’s conclusion or outcome in a legal, financial, or commercial context.

Insurer

A company or entity that provides financial protection against specified risks in return for premiums.

Disclosure

The act of making new or secret information known.