GAAP require that companies use the same depreciation method for financial reporting purposes that they use for income tax purposes.

Question

Quizplus · Accepted Answer

While GAAP provides guidance on how to calculate depreciation for financial reporting purposes, it does not require companies to use the same method they use for income tax purposes. In fact, companies often choose to use different depreciation methods for tax purposes in order to maximize tax benefits.

GAAP Require That Companies Use the Same Depreciation Method for Financial