Management should select the depreciation method that
A)is easiest to apply.
B)best measures the asset's fair value each period over its useful life.
C)best reflects the pattern in which the asset's future economic benefits are to be consumed.
D)is required by the government.

Question

Quizplus · Accepted Answer

The correct depreciation method is the one that best reflects the pattern in which the asset's future economic benefits are expected to be consumed by the entity. This approach ensures that the depreciation expense recorded in each period accurately represents the actual usage of the asset, aligning the expense with the revenue it generates.

Management Should Select the Depreciation Method That