Which of the Following Statements Is True

question 4

Multiple Choice

Which of the following statements is true?

• A) For tax purposes, a business must use the straight-line method of depreciation.
• B) For tax purposes, a business must use the diminishing value method of depreciation.
• C) For tax purposes, a business may use either the straight line or diminishing value method of depreciation.
• D) The depreciation method used for tax purposes must be the same as that used for external reporting.

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Definitions:

ISO 9000 Certified

A designation indicating that an organization complies with the standards of quality management and assurance specified by the International Organization for Standardization.

Typing Skills

The ability to input text into a computer or typewriter quickly and accurately, often measured in words per minute.

Full Coverage

Refers to insurance policies or warranties that offer comprehensive protection against a wide range of potential damages or losses.

Expected Wealth

The anticipated amount of money or assets that an individual or entity forecasts to accumulate over a period.