Why Is It Likely That New Firms Use Straight-Line Depreciation

question 43

Multiple Choice

Why is it likely that new firms use straight-line depreciation methods for reporting to shareholders?

• A) It increases the NPV of the firm's projects.
• B) It provides the greatest current tax benefit.
• C) It allows asset book values to increase with market values.
• D)It allows asset balances to decline more slowly.

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Definitions:

Design View

A workspace in software applications where users can create or modify elements and layouts in a non-live mode.

Datasheet View

A view in database applications that displays data in rows and columns, similar to a spreadsheet.

Datasheet View

A way of viewing data in a database that displays information in rows and columns, similar to a spreadsheet.

Rows And Columns

The horizontal lines (rows) and vertical divisions (columns) that structure data in a table or spreadsheet.