Which of the Following Statements Is Correct

question 55

Multiple Choice

Which of the following statements is correct?

• A)Using straight-line depreciation in comparison to an accelerated depreciation method will result in a lower reported amount of total assets at end of the first year of an asset's life.
• B)Using accelerated depreciation in the first year of an asset's life will result in a higher net income during the first year compared to using the straight-line depreciation method.
• C)Using an accelerated depreciation method will lead to a higher fixed asset turnover ratio for the first year.
• D)Using straight-line depreciation in comparison to an accelerated depreciation method will lead to a higher book value at the end of an asset's life.

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