Which of the Following Should Be the Main Determinant in the Selection

question 121

Multiple Choice

Which of the following should be the main determinant in the selection of the depreciation method for long-term operational assets?

• A) The method that best matches the pattern of asset use.
• B) The method that is most convenient to compute.
• C) The method that provides the greatest return to the stockholders.
• D) The method that provides the best tax advantage.

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Definitions:

Recognition Heuristic

A strategy in which decision making stops as soon as a factor that moves one toward a decision has been recognized.

Solve a Problem

The process of finding solutions or answers to a question or obstacle, often involving critical thinking, analysis, and the application of specific strategies or techniques.

Curiosity and Inquisitiveness

The desire to learn or know about anything; the quality of being curious and eager to explore and discover.

Conventional

Conventional refers to something that follows accepted or traditional standards, practices, or methods.