Byrd Company experienced an accounting event that affected its financial statements as indicated below: Which of the following accounting events could have caused these effects?
A)Recognized depletion expense under the units-of-production method.
B)Recognized depreciation expense under the double-declining-balance method.
C)Amortized patent cost under the straight-line method.
D)All of these answer choices are correct.

Question

Byrd Company experienced an accounting event that affected its financial statements as indicated below:  Which of the following accounting events could have caused these effects?
A)Recognized depletion expense under the units-of-production method. 
B)Recognized depreciation expense under the double-declining-balance method. 
C)Amortized patent cost under the straight-line method. 
D)All of these answer choices are correct.

Quizplus · Accepted Answer

All three of these events involve recognizing an expense or amortization over a period, which would affect the company's income statement (decreasing net income) and potentially its balance sheet (decreasing assets or increasing accumulated depreciation/amortization).

Byrd Company Experienced an Accounting Event That Affected Its Financial