Which one of the following statements about group depreciation is true?

A) When assets are sold, losses will be recognized, but not gains.
B) This method is used for groups of dissimilar assets.
C) Different assets in the group will have different depreciation rates.
D) Only one accumulated depreciation account is necessary for the whole group.

Group Depreciation

A depreciation strategy applied to a collection of assets that have similar characteristics and useful lives, simplifying the process of calculating depreciation expenses.

Accumulated Depreciation

This refers to the total amount of a company's asset cost that has been expensed through depreciation over the asset's life, reducing its initial cost on the balance sheet.

Assets Sold

Items or properties a company has disposed of, either by selling, trading, or other means of transfer.