Use of a Longer Useful Life for Depreciation Is an Example

question 137

True/False

Use of a longer useful life for depreciation is an example of conservative accounting.

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Definitions:

General Journal

A basic accounting record for entering all types of transactions before they are transferred to specific accounts in the general ledger.

Financial Statement

Documents that report on a company's financial performance and health, including the balance sheet, income statement, and cash flow statement.

Normal Balance

is the side of an account on which increases to the account are recorded, typically either a debit for assets and expenses or a credit for liabilities, equity, and revenues.

Account Category

A way of classifying accounts in accounting records, such as assets, liabilities, equity, revenues, and expenses.