Which Statement Relating to the Composite-Rate Depreciation Approach Untrue

question 7

Multiple Choice

Which statement relating to the composite-rate depreciation approach untrue?

• A) It is often used in practice by business entities with many similar assets in the one class.
• B) A single average depreciation rate is applied to the average of the beginning and ending balances of a functional group of assets.
• C) No gain or loss is recognised on the disposal of individual assets within the composite group.
• D) Composite-rate depreciation always uses the straight-line method of depreciation.

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