Post Utme Bsu 2022 Accounting Question 36

Practice objective / multiple choice question 36 from the 2022 Post Utme Bsu Accounting examination.

Post Utme Bsu 2022 Accounting Objective / Multiple Choice
Question 36 POST_UTME_BSU • 2022 • ACCOUNTING • objective

A company's accounting policy requires that depreciation be calculated using the straight-line method. However, the company's management has decided to use the reducing balance method for a specific asset. What is the implication of this decision on the company's financial statements?

Answer Options

A. The company's profit will be overstated.
B. The company's profit will be understated.
C. The company's profit will remain unchanged.
Correct Answer D. The company's profit will be affected by the change in depreciation method.
Correct Answer
D
Correct Option:
The company's profit will be affected by the change in depreciation method.

About This Question

This is Post Utme Bsu 2022 Accounting Question 36. It is one of the objective questions from the 2022 Post Utme Bsu Accounting examination.

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