Which of the following statements are true? Select one or more: a. MACRS must be used for book purposes if it is used for tax purposes. b. Managers often prefer the straight-line method because it helps to smooth earnings. c. Units of production method is not appropriate for natural resources. d. Double-declining balance recognizes more depreciation expense early in an asset's life.
Which of the following statements are true? Select one or more: a. MACRS must be used for book purposes if it is used for tax purposes. b. Managers often prefer the straight-line method because it helps to smooth earnings. c. Units of production method is not appropriate for natural resources. d. Double-declining balance recognizes more depreciation expense early in an asset's life.
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter7: Operating Assets
Section: Chapter Questions
Problem 12MCQ: Which of the following statements is true? a. The fixed asset turnover ratio assists managers in...
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Which of the following statements are true?
Select one or more:
a. MACRS must be used for book purposes if it is used for tax purposes.
b. Managers often prefer the straight-line method because it helps to smooth earnings.
c. Units of production method is not appropriate for natural resources.
d. Double-declining balance recognizes more depreciation expense early in an asset's life.
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