Which Is NOT True of Depreciation as Found in the Pro

question 50

Multiple Choice

Which is NOT true of depreciation as found in the pro forma statement?

• A)Depreciation,unlike sales,tends to go down each year with the Modified Asset Cost Recovery System (MACRS).
• B)Unless there is a change to investments in plant,property and equipment increasing the depreciation line item,using the same percentage as that of the previous year may prove erroneous.
• C)The finance manager should keep constant the pro forma income statement to accommodate for the actual estimate of depreciation for the coming year based on the capital budget of the company.
• D)All of these statements are NOT true.

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Definitions:

Output Power

The amount of power, typically measured in watts, that a device, system, or process delivers to its load.

Open Delta

An open delta connection refers to a method of transformer connection used in electrical systems that employs two transformers to create a three-phase supply with a smaller capacity than a full delta connection.

Three-Phase Transformer

A type of transformer used in three-phase systems, consisting of three sets of primary and secondary windings, used to step up or step down voltages in power distribution.

Single Phase Loads

Electrical loads operating with a single phase power supply, characterized by the use of two wires: one power wire and one neutral wire.