Which of the Following Statements Is Not True

question 67

Multiple Choice

Which of the following statements is not true?

• A) CCA will be the same whether a company uses the straight-line, diminishing-balance, or units-of-production method.
• B) Cash flow will be affected by the use of different depreciation methods.
• C) Over the life of the asset, total depreciation expense will be the same whether a company uses the straight-line, diminishing-balance, or units-of-production method.
• D) The diminishing-balance depreciation method will result in lower net income compared to the straight-line depreciation method in the early years.

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