A Company That Uses Accelerated Depreciation

question 111

Multiple Choice

A company that uses accelerated depreciation:

• A) would write off a larger portion of an asset's cost sooner than under the straight-line method.
• B) would find that depreciation speeds up, with a small portion taken in early years and larger amounts taken in later years.
• C) would find that more tax benefits occur earlier than under the straight-line method.
• D) would find itself out of compliance with generally accepted accounting principles (GAAP).
• E) would both write off a larger portion of an asset's cost sooner than under the straight-line method and find that more tax benefits occur earlier than under the straight-line method.

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