MC Qu. 112 Which of the following statements about ... Which of the following st

Question

MC Qu. 112 Which of the following statements about ...

Which of the following statements about depreciation methods is not correct?

a. The amount of depreciation expense recorded in each year of an asset's life depends on the method that is used.

b. Different depreciation methods can be used for different classes of assets provided the methods are used consistently over time so that financial statement users can compare results across periods.

c. At the end of an asset's life, after it has been fully depreciated, the total amount of depreciation will equal the asset's depreciable cost.

d. The amount of net income reported each year will be the same regardless of the depreciation method used.

Explanation / Answer

d. The amount of net income reported each year will be the same regardless of the depreciation method used.

Above statement incorrect since with the method of depreciation, amount of depreciation will change and since Depreciation is an expense, it will change Net income as well.

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