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:

Complex Pattern

A configuration or sequence of elements that are connected in a complicated way.

Across Situations

Refers to behaviors or phenomena that occur consistently in different environments or under varying circumstances.

Personality

Patterns of thinking, emotions, and behavior that tend to be enduring.

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The innate aspect of an individual's personality, including mood, disposition, and adaptability.