Indicate Whether Each of the Following Statements Is True or False

question 11

Short Answer

Indicate whether each of the following statements is true or false.
_____ a)MACRS is an accelerated depreciation method commonly used for tax purposes.
_____ b)The half-year convention is a semi-annual meeting of accountants and educators.
_____ c)MACRS requires that the taxpayer estimate the salvage value of assets.
_____ d)The use of MACRS provides tax benefits in the early years of an asset's life,compared to use of the straight-line method.
_____ e)Most companies use the same depreciation method for both financial reporting and tax reporting.

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Definitions:

Accounts Debited

The accounts on the left side of the accounting equation that increase with a debit transaction and decrease with a credit transaction.

Accounts Credited

Refers to the entries made on the credit side of a ledger, indicating a reduction in assets or an increase in liabilities or equity.

Supplies On Account

The purchase of supplies on credit, where payment is deferred to a later date.

Normal Balance

The side (debit or credit) of an account that is expected to have a higher balance based on the account type.