With Respect to Depreciation Policies,the Principle of Consistency Means

question 44

Multiple Choice

With respect to depreciation policies,the principle of consistency means:

• A)A company should disclose on the financial statements the depreciation method for all its capital assets.
• B)A company should use the same depreciation method from year to year for a given capital asset.
• C)A company should use the same depreciation methods as other companies in the same industry.
• D)A company should use the same depreciation method in computing depreciation expense on all its assets.

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Definitions:

Blinding

A method used in experiments to eliminate bias, where participants or researchers (or both) are unaware of certain key aspects of the study.

Incentive

A form of motivation or stimulus that encourages a person to perform or act in a certain way, often used in economics, business, and psychology.

Blocking Variable

A variable that groups experimental units in a way that reduces the effects of variability on the outcome, enhancing the experiment’s accuracy.

Supermarket Chains

Large retail organizations consisting of multiple supermarket locations, offering a wide variety of food and household products.