Which of the Following Statements About the Modified Accelerated Cost

question 53

Multiple Choice

Which of the following statements about the Modified Accelerated Cost Recovery System (MACRS) is correct?

• A)It is similar to the units-of-production depreciation method.
• B)It is applied using longer asset lives than the estimated useful lives required by GAAP.
• C)It provides a short-term tax benefit because of the higher depreciation expense reported in the early years of an asset's life.
• D)It is acceptable for use when preparing financial statements.

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Definitions:

International Management

The practice of managing business operations in more than one country, considering global trends and cultural differences.

Cross-Cultural

Pertaining to or comparing the cultures of two or more different societies or groups, highlighting contrasts and fostering understanding.

Uncertainty Avoidance

A cultural dimension that measures the extent to which societies are comfortable with ambiguity and the unknown, preferring structured situations.

Predeparture Training

Training provided to employees before they go on international assignments, focusing on cultural, language, and operational aspects of the host country.