Indicate whether each of the following statements is true or false.a)Straight-line depreciation is the most widely used method in the U.S.b)An accelerated depreciation method provides a lower depreciation charge in the early years of an asset's life cycle than does the straight-line method.c)The units-of-production method allocates the cost of a plant asset in proportion to the asset's usage.d)Total depreciation expense recognized over the asset's life is not affected by the choice of depreciation methods.e)Recording depreciation expense affects the income statement and the statement of cash flows but neither the balance sheet nor the statement of changes in stockholders' equity.

Question

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b)False c)True d)True e)Fa)This is true. Most U.S. companies use the straight-line method for financial reporting.b)This is false. An accelerated depreciation method provides a greater depreciation charge in an asset's early years of useful life than does straight-line.c)This is true. Using the units-of-production method ties depreciation expense to use or output of an asset.d)This is true. All depreciation methods produce the same total depreciation expense over an asset's useful life.e)This is false. Recording depreciation expense affects the income statement and the balance sheet but does not affect the statement of cash flows.

Indicate Whether Each of the Following Statements Is True or False.a)Straight-Line