Which of the following statements is true?
A) Land should be depreciated over the period of time it benefits the firm.
B) Accelerated depreciation must be used for financial reporting purposes.
C) Fixed assets are reported at historical cost plus accumulated depreciation.
D) The total amount of depreciation over the asset's life is the same regardless of depreciation method, although the rate of depreciation varies.

Question

Quizplus · Accepted Answer

The total depreciation expense over the life of an asset will be the same regardless of the depreciation method chosen (straight-line, declining balance, etc.). The difference lies in the timing and rate of depreciation, not the total amount.

Which of the Following Statements Is True