Which of the following statements is not true?
A)The depreciation method and the period of time selected to depreciate an asset can have a significant influence on income.
B)There are many depreciation methods.
C)The depreciation methods that recognize a large amount of depreciation in the later years of an asset's life are conservative.
D)The straight-line depreciation method recognizes depreciation in equal amounts over each year of the life of the asset.
E)There is sometimes a material difference in the lives used for depreciation between firms.

Question

Quizplus · Accepted Answer

The statement that the depreciation methods that recognize a large amount of depreciation in the later years of an asset's life are conservative is not true. Typically, these methods are considered aggressive because they defer most of the cost of the asset to future periods, leading to higher net income in the early years of the asset's life.

Which of the Following Statements Is Not True