While Congress Has Enacted Several Different Depreciation Methods, All Currently

question 46

True/False

While Congress has enacted several different depreciation methods, all currently owned assets are depreciated using the method in effect when the asset was placed in service.

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Definitions:

Contingent Liabilities

Potential obligations that may arise from past events, depending on the outcome of future events.

IFRS

International Financial Reporting Standards, a set of global accounting guidelines that govern how companies prepare and disclose their financial statements.

GAAP

Generally Accepted Accounting Principles; the standard framework of guidelines for financial accounting used in any given jurisdiction.

Current Liability

A company's debts or obligations that are due within one year, including accounts payable, short-term loans, and taxes payable.