A Manager Electing to Adopt a Depreciation Method That Increases

question 25

Multiple Choice

A manager electing to adopt a depreciation method that increases income,but does not reflect the actual use of the asset,is consistent with:

• A) The efficiency perspective of Positive Accounting Theory
• B) The opportunistic perspective of Positive Accounting Theory
• C) Both the opportunity and the efficiency perspectives of Positive Accounting Theory
• D) Neither the opportunity nor the efficiency perspectives of Positive Accounting Theory

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Definitions:

Demonstration

A practical display or explanation of how a product or service works, often used in sales to highlight benefits to potential customers.

Complimentary

Given for free or without charge, often as a gesture of goodwill or as part of a promotional offer.

Customer Benefit

The value or advantage that a customer gains from using a product or service, leading to satisfaction or resolving a problem.

Product

An item or service offered by a company to customers, which can be physical (goods) or intangible (services).