Which of the Following Would Allow a Company to Report

question 103

Multiple Choice

Which of the following would allow a company to report higher net income in earlier periods?

• A)A lower residual value
• B)A shorter useful life
• C)Use of straight-line depreciation
• D)Use of declining balance depreciation

---

Definitions:

Schedule B

A section of IRS tax forms for reporting interest and dividend income.

Interest Income

Income earned from various forms of investments that pay interest, such as savings accounts, CDs, and government bonds, subject to income tax.

Dividend Income

Income received from owning shares in a corporation, typically paid out from the corporation's profits.

Economic Benefit

The advantage or gain received by individuals or businesses, often used in the context of employee compensation, taxation, and public policy.