Which of the Following Statements Is FALSE

question 79

Multiple Choice

Which of the following statements is FALSE?

• A)Financial data on the Internet or via company annual reports provide a wealth of knowledge about the operations of the firm.
• B)Knowing the relationship of the primary financial statements and how to utilize the data in each are important tools for all financial managers.
• C)Although the annual report of a company is printed and mailed to owners and the SEC,much of the financial statement information is available at various financial Web sites.
• D)EDGAR stands for Electronic Data Gathering Analysis and Retribution.

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Definitions:

Depreciation Expense

The amount of depreciation charged in the income statement, representing the cost allocated for the use of fixed assets during an accounting period.

Estimated Useful Life

The expected period over which a fixed asset is projected to be usable by a business, affecting its depreciation calculation.

Double-Declining-Balance Method

An accelerated depreciation method where twice the straight-line depreciation rate is applied to the diminishing balance of an asset's book value.

Total Depreciation Expense

Total Depreciation Expense is the cumulative amount of depreciation that has been charged on a company's assets over a specific period to account for the reduction in value due to wear and tear, age, or obsolescence.