Company a Uses an Accelerated Depreciation Method While Company B

question 39

Multiple Choice

Company A uses an accelerated depreciation method while Company B uses the straight-line method for an asset of the same cost and useful life.Which of the following statements is true?

• A)Company A will have higher depreciation expense in the early years but Company B will have the higher expense towards the end of the asset's useful life.
• B)Company A will consistently have higher depreciation expense until residual value is reached.
• C)Company B will have higher depreciation expense in the early years but Company A will have the higher expense towards the end of the asset's useful life.
• D)Company B will consistently have higher depreciation expense until residual value is reached.

---

Definitions:

Interviewees' Responses

the answers or feedback provided by individuals who are being interviewed.

Marcus Buckingham

Known for his work on strengths-based management and leadership, he is an author and business consultant focusing on talent development.

Donald Clifton

A psychologist and business executive known for his work in the field of strengths-based psychology and the development of strengths assessment tools.

Mihaly Csikszentmihalyi

A Hungarian-American psychologist recognized for his work on the concept of “flow,” a state of heightened focus and immersion in activities.