Accelerated Methods of Depreciation Result in Higher Net Income in the Last

question 120

True/False

Accelerated methods of depreciation result in higher net income in the last years of an asset's life compared to the straight-line method.

---

Definitions:

Fiscal Year

A financial year used by governments and businesses for accounting purposes, which may or may not align with the calendar year.

Convertible Bonds

Debt securities issued by a corporation that can be converted into a predetermined number of the company's equity shares.

Old Age Security Clawback

A repayment obligation that kicks in when the annual income of an Old Age Security (OAS) recipient exceeds a certain threshold, reducing the OAS benefit.

Net Income

The sum of income remaining after subtracting all costs and taxes from the total revenue.