Which of the Following Statements Is True with Regard to Depreciation

question 86

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 always depreciate similar assets by the same methods.