U.S.GAAP authoritative guidance requires that financial statements report depreciation charges based on _____ estimates; in practice, the _____ method is the most common.
A)aggressive; straight-line (time)
B)reasonable; straight-line (time)
C)aggressive; straight-line (use)
D)reasonable; straight-line (use)
E)reasonable; accelerated

Question

Quizplus · Accepted Answer

U.S. GAAP requires that depreciation charges be based on reasonable estimates, and in practice, the straight-line method (based on time) is the most commonly used approach for reporting depreciation in financial statements.

USGAAP Authoritative Guidance Requires That Financial Statements Report Depreciation Charges