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

question 86

Multiple Choice

Which of the following typically results from using straight-line depreciation rather than MACRS 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 Internal Revenue Service over an asset's life.
• C) Financial managers have more funds from operations available over the asset's life.
• D) Cash flow from operations will be higher in the second year of the asset's life.

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Definitions:

Saturated Fats

Fats that contain no double bonds between carbon atoms, typically solid at room temperature and found in animal fats and some vegetable oils.

Refined Grain

Grain products that have been processed to remove the bran and germ, leaving behind the endosperm, often resulting in a loss of nutrients.

Complex Carbohydrates

Carbohydrates consisting of long chains of sugar molecules, found in foods such as grains, vegetables, and legumes, providing sustained energy.

Lacteal

A lymphatic capillary located in the villi of the small intestine, responsible for absorbing dietary fats and transporting them to the circulatory system.