Which of the Following Statements Is Not True About Depreciation

question 171

Multiple Choice

Which of the following statements is not true about depreciation for tax purposes?

• A) The straight-line method is used for most assets.
• B) Estimated useful life is ignored.
• C) Depreciable assets are written off rapidly.
• D) Estimated residual value is ignored.

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Definitions:

Functional Currency

The main form of money used in the chief economic setting where an organization functions, usually utilized in its financial statements.

Exchange Rates

The cost of converting one currency into another.

Functional Currency

The currency of the primary economic environment in which an entity operates, typically used in measuring and reporting its financial performance.