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:

DSM

The Diagnostic and Statistical Manual of Mental Disorders, a comprehensive classification of officially recognized psychiatric disorders, used by healthcare professionals in the U.S. and other countries.

Multiaxial System

A framework used in psychiatric diagnosis that considers multiple aspects of an individual's mental condition and situation.

Mental Retardation

An outdated term now referred to as intellectual disability; characterized by below-average intellectual function and limitations in adaptive behavior commencing before the age of 18.

DSM-Based Diagnosis

The use of the Diagnostic and Statistical Manual of Mental Disorders as a guide for identifying and classifying mental health disorders.