Which of the following should be the main determinant for selection of the allocation method for long-term operational assets?
A)The method that best matches the pattern of asset use.
B)The method that is most convenient to compute.
C)The method that provides the greatest return to the stockholders.
D)The method that provides the best tax advantage.

Question

Quizplus · Accepted Answer

Companies should choose a depreciation method that most closely matches the benefit derived from the asset to produce the most realistic income statement.

Which of the Following Should Be the Main Determinant for Selection