Trainer Ltd Is Trying to Decide Whether to Change from the Reducing

question 6

Multiple Choice

Trainer Ltd is trying to decide whether to change from the reducing balance method of depreciation to the straight-line method for both accounting and tax purposes. Using the reducing balance method at the rate allowable for taxation purposes, the expense would be $1 020 000. If it changed to the straight-line method, depreciation expense would be $680 000. If the straight-line method were used instead of the reducing balance method, which of the following is NOT affected?

• A) Net profit.
• B) Cash flow from operations
• C) Income tax liability
• D) Depreciation expense

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Definitions:

Skin Care

The practice of maintaining the health and cleanliness of the skin, often involving routines or products that protect skin from damage.

Nursing Assistive Personnel (NAP)

Healthcare workers who provide basic care under the supervision of nursing staff, including activities of daily living and other tasks.

Delegate

To entrust a task or responsibility to another person, typically one who is less senior than oneself.

Licensed Practical Nurse

A nurse who has completed the necessary training and licensure to provide basic medical care under the supervision of a registered nurse or physician.