Which of the following statements about depreciation methods is not correct?
A)The amount of depreciation expense recorded in each year of an asset's life depends on the method that is used.
B)Different depreciation methods can be used for different classes of assets provided the methods are used consistently over time so that financial statement users can compare results across periods.
C)At the end of an asset's life,after it has been fully depreciated,the total amount of depreciation will equal the asset's depreciable cost.
D)The amount of net income reported each year will be the same regardless of the depreciation method used.

Question

Quizplus · Accepted Answer

The straight-line,units-of-production,and declining-balance methods are acceptable methods of depreciation.They will produce the same total depreciation over the asset's useful life,but the amount of depreciation expense and book value will differ from year-to-year.As a result,the amount of net income reported in a given year can vary depending on the depreciation method used.

Which of the Following Statements About Depreciation Methods Is Not