78.9k views
3 votes
Similar assets purchased in the same year must be depreciated using the ___ (same/different) depreciation method, but similar assets purchased in different years can be depreciation using ___ (same/different) depreciation methods

1 Answer

4 votes

Final answer:

Similar assets bought in the same year have to be depreciated using the same method, while those acquired in different years can use different methods if justified.

Step-by-step explanation:

When it comes to depreciating assets, consistency in the application of depreciation methods is important for accurate financial reporting. The question pertains to the rules of applying depreciation methods to similar assets. According to generally accepted accounting principles (GAAP), similar assets purchased in the same year must be depreciated using the same depreciation method. On the other hand, similar assets purchased in different years can be depreciated using different depreciation methods if there is a valid justification for the change, such as a change in the expected pattern of economic benefits.

User Bolivar
by
8.1k points