Indicate Whether Each of the Following Statements Regarding Accounting for Long-Term

question 154

Short Answer

Indicate whether each of the following statements regarding accounting for long-term assets is true or false.
_____ a) Other things being equal, the lower a company estimates the salvage value of a plant asset to be, the lower the company's net income will be.
_____ b) Depreciation expense is an example of a "non-cash" expense.
_____ c) A company cannot use the double declining method of depreciation for financial statements while using the straight-line method of depreciation for tax returns.
_____ d) The book value of an asset is the amount a company believes it is worth (its fair market-value) as of the date of the balance sheet.
_____ e) MACRS is not an acceptable way of computing depreciation expense under GAAP.

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Definitions:

Hostage Taker

An individual who seizes and holds people against their will, typically to demand ransom or fulfill other conditions.

Suicidal

Pertaining to having the intention or displaying tendencies towards self-harm that could lead to one's death.

Alarm

A device or signal for warning or alerting to danger, or the state of being suddenly aware of potential or imminent danger.

Hostage Takers

Individuals or groups who illegally seize and hold people against their will, typically to demand concessions or ransom.