Which of the Following Statements Is CORRECT

question 49

Multiple Choice

Which of the following statements is CORRECT?

• A) Under current laws and regulations, corporations must use straight-line depreciation for all assets whose lives are 5 years or longer.
• B) Corporations must use the same depreciation method for both stockholder reporting and tax purposes.
• C) Using accelerated depreciation rather than straight line normally has the effect of speeding up cash flows and thus increasing a project's forecasted NPV.
• D) Using accelerated depreciation rather than straight line normally has no effect on a project's total projected cash flows nor would it affect the timing of those cash flows or the resulting NPV of the project.
• E) Since depreciation is a cash expense, the faster an asset is depreciated, the lower the projected NPV from investing in the asset.

---

Definitions:

Guild And Apprenticeship

A system where a novice learns a trade or craft from an experienced master in a structured program.

High-Impact Learning

Educational practices that actively engage students and have a significant effect on their learning outcomes.

George Kuh

An educational researcher known for his work on student engagement, learning outcomes, and the collegiate experience.

NACE Definition

The statistical classification of economic activities in the European Community, providing a common framework for the collection and analysis of economic data.