Which of the Following Not Is an Advantage of the Use

question 34

Multiple Choice

Which of the following not is an advantage of the use of accelerated depreciation methods for tax purposes as opposed to the straight-line method?

• A) The total amount of tax paid over the lifetime of the asset is reduced.
• B) The business has the interest-free use of deferred tax dollars until the later years of the asset's life.
• C) Lower tax payments are made during the early years of the asset's life.
• D) For many assets the combination of decreasing depreciation expense of the asset and increasing repairs and maintenance expense tends to equalise the total periodic expense of holding the asset.

---

Definitions:

Contains Information

Refers to data or content that is held within a document, database, or another medium.

Recurrence Pattern

The specification for how frequently an event repeats, such as daily, weekly, or monthly, in calendaring and scheduling software.

Regular Intervals

Consistently spaced points in time or space.

To Text Box

A feature in software that allows users to input text into a designated box, often used in forms or as part of a graphical user interface.