Which of the Following Statements Is True Regarding Depreciation Expense

question 15

Multiple Choice

Which of the following statements is true regarding depreciation expense?

• A)Different companies in the same industry always depreciate similar assets by the same methods.
• B)A company using the straight-line method will show a smaller book value for assets than if the same company uses the double-declining-balance method.
• C)Choosing the double-declining balance method over the straight-line method will produce a greater total depreciation expense over the asset's life.
• D)A company should use the depreciation method that best matches expense recognition with the use of the asset.

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Definitions:

Nuts

Hard-shelled seeds of certain plants that are often edible and rich in nutrients, or a slang term to describe someone who is crazy or eccentric.

Demand

Refers to the quantity of a good or service desired by consumers at a given price level and time.

Income

Represents the financial earnings of an individual or enterprise, often quantified on a yearly basis.

Utility Function

An economic model representing how a consumer ranks different bundles of goods based on the level of satisfaction or utility they provide.