Which of the Following Statements Is False

question 60

Multiple Choice

Which of the following statements is false?

• A)The book value at the end of an asset's useful life will be the same under all the depreciation methods allowed under GAAP.
• B)The balance in the accumulated depreciation account will be the same at the end of an asset's useful life under all the methods allowed under GAAP.
• C)Once you select a depreciation method, then you must use this method for all depreciable assets.
• D)The annual depreciation expense and year-end book values will differ under the various depreciation methods over the life of the asset.

Understand the importance of only including relevant costs and benefits in project analysis.

Identify what constitutes an incremental cash flow for the purposes of capital budgeting.

Recognize that sunk costs and expenses not directly related to the project should not influence the project's cash flow analysis.

Recognize and calculate the impact of erosion when evaluating new projects.

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Definitions:

Equitable Assignment

The transfer of future rights to benefits in property or contracts, recognized by equity rather than common law.

Non Est Factum

A legal defense claiming a contract is invalid because it was misunderstood or misrepresented at the time of signing, not reflective of the signer's intent.

Unconscionability

A condition in contract law where an agreement is deemed unjust or extremely one-sided in favor of the party with superior bargaining power.

Duress

A condition where a person performs an act as a result of violence, threat, or other pressures against them, undermining their free will.