When firms report depreciation to stockholders, they

A. always use the same depreciation method that they use for income taxes.

B. usually use the same depreciation method that they use for income taxes.

C. directly reduce the equipment account for depreciation on the equipment.

D. none of the above is correct.

When WorldCom, in error, permanently capitalized fees it paid when its customers used phone lines of another firm,

A. it overstated its net income.

B. it understated its expenses.

C. it violated the matching concept.

D all of the above are correct.