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.

---

Definitions:

Independent Contractors

Individuals who are in business for themselves, providing goods or services to another entity as a non-employee, typically on a contract basis.

Workforce

The collective group of individuals engaged in or available for work, either in a specific area or in a particular industry or occupation.

Advantages

Benefits or favorable traits that give something or someone a superior position or condition compared to others.

Respondeat Superior

A legal doctrine holding an employer or principal legally responsible for the wrongful acts of an employee or agent, if such acts occur within the scope of the employment or agency.