2. An accelerated method of depreciation is one that depreciates an asset over a shorter time period relative to that used for a non-accelerated method.

• True
• False

3. in order to be considered a capital expenditure, post-acquisition expenditures (related to existing plant assets) must:

• a. Extend the useful life of the asset in question.
• b. Significantly enhance the productive capacity of the asset in question.
• c. Either (a) or (b).
• d. Both (a) and (b).
• e. Neither (a) nor (b), as post-acquisition are not capitalized.

4. Companies must use the same method of depreciation for tax purposes that they use for financial reporting.

True

False

5. A company cannot report internally generated goodwill on its balance sheet.

• True
• False