An Accelerated Depreciation Method

question 92

Multiple Choice

An accelerated depreciation method:

• A)Results in reporting higher earnings every year.
• B)Depreciates an asset over a shorter life than does the straight-line method.
• C)Recognizes more depreciation expense in the early years of an asset's useful life and less in the later years.
• D)Is required for assets that become technologically obsolete before they physically wear out.

---

Definitions:

General Incorporation Law

Legal statutes that facilitate the establishment of corporations by providing standardized procedures and requirements for incorporation.

For-Profit Corporations

Businesses that are established to generate profit for their owners, with revenues exceeding costs.

Laws

The system of rules created and enforced through social or governmental institutions to regulate behavior.

Common Law

A body of legal principles that derives from court decisions over time rather than from statutes or constitutions, emphasizing precedent in judicial decisions.