Indicate Whether Each of the Following Statements Regarding Accounting for Long-Term

question 109

Short Answer

Indicate whether each of the following statements regarding accounting for long-term assets is true or false.
_____ a)Other things being equal,the lower a company estimates the salvage value of a plant asset to be,the higher the company's net income will be.
_____ b)Depreciation expense is an example of a "non-cash" expense.
_____ c)For tax purposes the most desirable depreciation method is the one that produces the lowest amount of depreciation expense.
_____ d)The book value of an asset is the amount a company believes it is worth (its fair value)as of the date of the balance sheet.
_____ e)A company that uses straight-line depreciation for financial statement reporting and MACRS for tax reporting will show a deferred tax liability in an asset's early life.