The overriding principle for all depreciation methods is that the method must be:
A) Conservative and economic.
B) Systematic and rational.
C) Consistent and conservative.
D) Significant and material.

Question

Quizplus · Accepted Answer

The best choice is B because depreciation methods should be systematic and rational, meaning they should be based on a logical and consistent approach that reflects the decline in value of an asset over time. This principle ensures that the depreciation expense is calculated accurately and fairly over the useful life of the asset. While consistency and conservatism are also important principles in accounting, they are not as directly relevant to determining the most appropriate depreciation method to use. Significant and material are also important accounting principles, but they are not directly related to determining the most appropriate depreciation method.

The Overriding Principle for All Depreciation Methods Is That the Method