Which of the following statements related to depreciation is true? Multiple Choice The residual value of an asset depends on the depreciation method chosen If a company uses double-declining-balance method for tax purposes, the company must also use this method for financial reporting purposes. Over the life of an asset, total reported profits will be greater under the straight-line method than under the double-declining-balance method. Conceptually, activity-based depreciation provides a better matching of the asset's cost to the use of that asset to help produce revenues.