Which one of the following statements is an advantage of the group and composite methods of depreciation?
A)Faulty estimates are concealed for long periods.
B)Gains are deferred beyond the period in which they actually occurred.
C)Record keeping is simplified.
D)Losses are not recognized in the period in which they occur.

Question

Quizplus · Accepted Answer

The group and composite methods of depreciation simplify record keeping by grouping assets and calculating depreciation based on their collective value rather than individual values. This can save time and reduce errors in record keeping. However, this method does not affect the recognition of gains or losses, and can still result in faulty estimates if the group or composite value is not accurately calculated.

Which One of the Following Statements Is an Advantage of the Group