Responsibility for selection of the depreciation methods used in financial reporting rests with:
A)Company management.
B)The FASB.
C)The IRS.
D)The CPA firm that audits the company's financial statements.

Question

Quizplus · Accepted Answer

The responsibility for selection of the depreciation method used in financial reporting rests with the company's management as they are responsible for making decisions regarding financial reporting and disclosures. The FASB sets the general rules and standards for financial accounting and reporting. The IRS sets tax regulations regarding depreciation for tax purposes. The CPA firm that audits the company's financial statements will review the depreciation methods used by the company, but they do not have the authority to select the method.

Responsibility for Selection of the Depreciation Methods Used in Financial