Which of the Following Is a False Statement

question 57

Multiple Choice

Which of the following is a false statement?

• A)Companies can change the method of depreciating assets from one year to the next.
• B)Companies can affect the book value at the end of an asset's life by choosing one method of depreciation over another.
• C)Companies can use one method of depreciation for some of their operational assets but then use a different method for another group or type of operational assets.
• D)Companies cannot change their estimate of the salvage value of a long-term asset.

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Definitions:

GDP

Gross Domestic Product, the total market value of all goods and services produced within a country in a specific time period, used as a broad measure of overall economic performance.

Personal Disposable Income

The amount of money that individuals have available for spending and saving after income taxes have been accounted for.

Manufacturing Output

The total value or volume of goods and products produced within a manufacturing sector in a specific period.

Operating Leverage

The degree to which a firm or project can increase operating income by increasing revenue, reflecting fixed versus variable costs.