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:

Cash Dividend

A payment made by a company out of its profits to its shareholders, usually in the form of cash.

Bonds Payable

Long-term liabilities represented by bonds that a company has issued, which it is obligated to pay back at a future date along with interest payments.

Financing Activities

Transactions related to a company's raising and repaying of funds, including issuing debt, obtaining loans, and returning capital to shareholders.

Cash Dividend

A portion of a company's earnings that is paid to shareholders, typically in cash, as a return on their investment.