Which of the Following Best Explains Why It Is Sensible

question 20

Multiple Choice

Which of the following best explains why it is sensible for a firm to use an accelerated depreciation schedule rather than straight-line depreciation?

• A)The firm will have substantially fewer depreciation expenses later in the depreciation timeline.
• B)The firm can decide over how many years an item may be depreciated, thus allowing it full control of its depreciation expenses.
• C)The firm will substantially decrease its depreciation tax shield across all of the depreciation timeline.
• D)The firm will receive greater benefits to its cash flow earlier in the depreciation timeline and thus increase net present value (NPV).

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Definitions:

Basic Emotions

Fundamental emotions that are hard-wired in humans and include happiness, sadness, fear, disgust, surprise, and anger.

Cognitive Response

The internal thought process and mental activities triggered by external stimuli, influencing how information is perceived, processed, and remembered.

Physical

Refers to anything pertaining to the body or involving bodily movements.

Emotional

Pertaining to feelings or psychological states that arise in response to stimuli, affecting moods and behavior.