According to accounting standards,the method of depreciation chosen should
A)measure the change in an asset's value.
B)be systematic and rational.
C)allocate the most of the asset's cost to the early periods benefiting from its use.
D)recognize the reduced usefulness of an asset.

Question

Quizplus · Accepted Answer

Accounting standards require that the method of depreciation chosen should be systematic and rational. This means that the method should be consistently applied and based on a logical approach that reflects the expected pattern of consumption of the asset's economic benefits. While options A, C, and D are all factors that may be considered when selecting a depreciation method, none of these reasons alone satisfies the requirement of being systematic and rational.

According to Accounting Standards,the Method of Depreciation Chosen Should