Which of the Following Statements Is True with Regard to Depreciation

question 94

Multiple Choice

Which of the following statements is true with regard to depreciation expense?

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

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Definitions:

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A cognitive trait where an individual is unable to differentiate between their own perspective and that of others, often resulting in viewing the world solely from their own point of view.

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The unbiased, factual analysis or explanation of data or events, free from personal feelings or opinions.

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