[AccountingDummy]

Which of the following statements about long-term assets and disclosures is true?

a. A business must disclose every depreciable asset it owns in the financial statements.
b. Disclosure of PP&E assets by major categories provides decisions makers with insight on a company's cash flow expenditures
C The choice of a depreciation method can significantly influence a company's apparent financial condition and reported profits.
D Companies often choose to use accelerated depreciation for their income statements and straight-line depreciation for tax returns.
e. A business should match any debt used to purchase a long-term asset with the long-term asset that debt was used to purchase in the financial statements.



I'm leaning toward e. d is out because accelerated depreciation gives the tax break. A seems unlikely. Every depreciable asset would be every file cabinet etc. Just too many things. The financial statement would go on for ages. However, depreciation can affect a company's apparent financial condition and reported profits. I've narrowed it down a little, but I'm still struggling.

[CaptainForest]

D is incorrect.

E isn't exactly right.

I like C as an answer. Depending on which depreciation method you choose, it can change, therefore affecting net income.

[peds]

A is the correct answer