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Consider the following statements concerning depreciation: S1. The reducing-balance method of depreciation results in higher charges to the statement of profit or loss than the
Consider the following statements concerning depreciation: S1. The reducing-balance method of depreciation results in higher charges to the statement of profit or loss than the straight-line method of depreciation over the life of the asset. S2. The amount of depreciation charged by two businesses using an identical asset will be the same. Which one of the following combinations concerning the statements (true or false) is correct? Statement S1: True; Statement S2: False Statement S1: False: Statement S2: True Statement S1: True; Statement $2: True Statement S1: False; Statement $2: False
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