Which of the Following Statements Is Correct

question 73

Multiple Choice

Which of the following statements is correct?

• A)Companies will change the method of depreciating assets from one year to the next to reflect usage of an asset.
• B)Companies can affect the book value at the end of an asset's life by choosing one method of depreciation over another.
• C)Companies can use one method of depreciation for some of their long-lived productive assets but then use a different method for another group or type of long-lived productive assets.
• D)Companies can minimize an asset's book value in the first year of use by selecting the straight-line depreciation method rather than the double-declining-balance methoD.Different depreciation methods can be chosen for various assets.

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Definitions:

Min Function

In mathematics, a function that identifies the smallest value in a set of numbers.

Income

Represents the money received, especially on a regular basis, for work or through investments.

Price of X

The amount of money required to purchase a specified amount of good or service 'X'.

Price of Y

The cost or value attributed to a good or service denoted by 'Y', often set by market demand and supply or by the seller.