Which of the Following Best Explains Why It Is Sensible

question 65

Multiple Choice

Which of the following best explains why it is sensible for a firm to use an accelerated depreciation schedule rather than straight-line depreciation?

• A) The firm will receive greater benefits to its cash flow earlier in the depreciation timeline and thus increase net present value (NPV).
• B) The firm can decide over how many years an item may be depreciated, thus allowing it full control of its depreciation expenses.
• C) The firm will have substantially fewer depreciation expenses later in the depreciation timeline.
• D) The firm will substantially decrease its depreciation tax shield across all of the depreciation timeline.

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Definitions:

Stereotypical Role Expectations

Preset notions about how individuals should behave based on their social roles or group memberships.

Organizational Structure

Refers to the way in which a company or organization is arranged, including its hierarchies, communication systems, and distribution of responsibilities.

Conformity To Gender Roles

The extent to which individuals adhere to the culturally defined expectations and behaviors associated with their gender.

Intimacy

The close familiarity or friendship that fosters a deep emotional connection between people.