Which of the following would most likely be lower
Which of the following would most likely be lower in the early years of an asset’s life using accelerated depreciation methods rather than straight-line depreciation?
A.Investing cash flow
B.Shareholder’s equity
C.Cash flow from operations
参考解答
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2024-10-11 06:14:58
Ans:B
The greater depreciation expense in the early years of an asset’s life using accelerated depreciation methods rather than straight-line depreciation would lead to lower net income and lower retained earnings in those years.Lower retained earnings would result in lower shareholders’ equity.
Effect of depreciation method on financial statements and key ratios:
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