A company should choose a depreciation method that most closely matches the cost of the asset against the future revenues it generates.

Question

Quizplus · Accepted Answer

This statement is true. A company should choose a depreciation method that accurately reflects the decline in value of an asset over time and matches it against the future revenues that it generates. This helps the company to accurately calculate the profitability of its investments and make informed decisions about future investments.

A Company Should Choose a Depreciation Method That Most Closely