Which of the Following Statements Is TRUE

question 199

Multiple Choice

Which of the following statements is TRUE?

• A)The depreciation expense reported on external financial statements prepared for shareholders is guided by generally accepted accounting principles.
• B)The depreciation expense reported on a federal income tax return is guided by generally accepted accounting principles.
• C)The depreciation expense reported on the income statement must match (the matching principle)the depreciation expense reported on a Federal income tax return.
• D)MACRS is an accelerated depreciation method that can be used for financial reporting.

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Definitions:

Profits And Losses

A financial metric indicating the positive (profits) or negative (losses) financial outcomes of a business's operations.

Scarce Resources

Resources that are limited in supply and are not available in sufficient quantities to satisfy all the various ways a society wants to use them.

Society

A group of individuals living together in a more or less ordered community with shared laws, traditions, and values.

Economic Profit

The disparity between a company's complete earnings and all its expenses, encompassing both direct and potential costs.