The most important objective for depreciation is accuracy. One aspect of this objective is the consistency of depreciation policy. The four considerations in determining this do NOT include:
A) the estimated residual value.
B) the policy of depreciating assets in the year of acquisition and disposition.
C) what accounting standards must be used.
D) the method of depreciation.

Question

Quizplus · Accepted Answer

The considerations for consistency in depreciation policy typically include the estimated residual value, the policy for depreciating assets in the year of acquisition and disposition, and the method of depreciation. The accounting standards to be used are not a consideration in determining consistency of depreciation policy, as they are external requirements rather than internal policy decisions.

The Most Important Objective for Depreciation Is Accuracy