Which of the Statements Below Is FALSE

question 55

Multiple Choice

Which of the statements below is FALSE?

• A) Under the modified accelerated cost recovery system (MACRS) system of depreciation, the government classifies all assets into groups that are assigned specific "lives" for the purpose of depreciation.
• B) Under the modified accelerated cost recovery system (MACRS) system of depreciation, once the assigned class life is established, an adjustable percentage of the cost is expensed each year as depreciation.
• C) Under the modified accelerated cost recovery system (MACRS) system of depreciation, it can be assumed that its assigned life class is the shortest allowable recovery period for allocating the capital expenditure costs and reducing taxes.
• D) Depreciation or "expired" costs each year do not reflect cash flows because the actual purchase and installation (outflow of dollars) of the machines have already taken place.

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Definitions:

Outcomes

Denotes the results or consequences that derive from specific actions, procedures, or behaviors.

Improvements Needed

A phrase commonly used to indicate areas or aspects that require enhancements, optimizations, or corrections.

Strategic

Pertaining to the identification of long-term or overall aims and interests and the means of achieving them, often within organizational or national contexts.

Performance Management

A systematic process by which an organization involves its employees in improving effectiveness towards the achievement of the company's goals and objectives.