Which of the Following Statements Is (Are) Correct

question 95

Multiple Choice

Which of the following statements is (are) correct?

• A) Accumulated depreciation represents a fund being accumulated for the replacement of plant assets.
• B) The cost of a machine includes the cost of repairing damage to the machine during the installation process.
• C) A company may use different depreciation methods in its financial statements and its income tax return.
• D) The use of an accelerated depreciation method causes an asset to wear out more quickly than does use of the straight-line method.

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Definitions:

Real Property

Land and anything permanently attached to it, such as buildings, also including rights and interests associated with the land.

Personal Property

Movable assets or belongings, excluding real estate, owned by an individual or entity.

Common Carriers

Companies or entities that provide transportation services to the public under the authorization or regulation of a governmental body.

Liability

Legal responsibility for one's actions or inactions, which may lead to legal or financial penalties.