Which of the Following Typically Results from Using Straight-Line Depreciation

question 14

Multiple Choice

Which of the following typically results from using straight-line depreciation in the set of books for shareholders?

• A)net income appears higher during the early periods of depreciation.
• B)less money is paid to the Canada Revenue Agency.
• C)financial managers have more funds from operations available.
• D)depreciable assets last for a longer period of time.

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Definitions:

Court of King's Bench

A historical court in England that dealt with common law matters, including civil and criminal cases.

Exchequer Court

A historical court in England responsible for managing the government's finances and adjudicating cases related to revenue and taxes.

Substantive Law

The set of laws that govern how members of a society are to behave, outlining rights and duties, as opposed to procedural law which outlines how those laws are enforced.

Procedural Law

Part of the legal system that dictates the process and methods by which the law is practiced and enforced.