Which of the statements below is FALSE?
A)Under the modified accelerated cost recovery system (MACRS)system of depreciation,the government classifies all assets into groups that are assigned specific "lives" for the purpose of depreciation.
B)Under the modified accelerated cost recovery system (MACRS)system of depreciation,once the assigned class life is established,an adjustable percentage of the cost is expensed each year as depreciation.
C)Under the modified accelerated cost recovery system (MACRS)system of depreciation,it can be assumed that an asset's assigned life class is the shortest allowable recovery period for allocating the capital expenditure costs and reducing taxes.
D)Depreciation or "expired" costs each year do not reflect cash flows because the actual purchase and installation (outflow of dollars)of the machines have already taken place.

Question

Quizplus · Accepted Answer

The Answer of Which of the statements below is FALSE?
A)Under the modified accelerated cost recovery system (MACRS)system of depreciation,the government classifies all assets into groups that are assigned specific "lives" for the purpose of depreciation.
B)Under the modified accelerated cost recovery system (MACRS)system of depreciation,once the assigned class life is established,an adjustable percentage of the cost is expensed each year as depreciation.
C)Under the modified accelerated cost recovery system (MACRS)system of depreciation,it can be assumed that an asset's assigned life class is the shortest allowable recovery period for allocating the capital expenditure costs and reducing taxes.
D)Depreciation or "expired" costs each year do not reflect cash flows because the actual purchase and installation (outflow of dollars)of the machines have already taken place.

Which of the Statements Below Is FALSE