Companies must use MACRS:
A)in all financial records and reports.
B)for their tax books only.
C)for their financial books.
D)whenever accelerated depreciation is called for.

Question

Quizplus · Accepted Answer

MACRS stands for Modified Accelerated Cost Recovery System, which is a system used for tax purposes to calculate depreciation. Therefore, companies must use MACRS for their tax books only. It is not required to use MACRS in their financial records or reports, but they may choose to do so for consistency and clarity. The use of accelerated depreciation is also not always necessary, so option D is not correct.

Companies Must Use MACRS