Company a Uses an Accelerated Depreciation Method While Company B

question 27

Multiple Choice

Company A uses an accelerated depreciation method while Company B uses the straight-line method for an asset of the same cost and useful life.Other things being equal,which of the following is true?

• A)Company A will have higher net income in the early years but Company B will have higher net income towards the end of the asset's useful life.
• B)Company A will consistently have the larger net income until residual value is reached.
• C)Company B will have higher net income in the early years but Company A will have higher net income towards the end of the asset's useful life.
• D)Company B will consistently have the larger net income until residual value is reached.

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Definitions:

Mentally Ill

Having a condition that affects a person's thinking, feeling or mood, significantly impacting daily functioning.

Abnormal Condition

A state where there is a deviation from the normal or healthy condition.

Brain

The organ located in the head of an animal that controls its actions and responses by processing sensory information.

Mind

The aspect of an individual that allows them to perceive the world and their own experiences, engage in thought, and experience emotions; the ability for conscious thinking and awareness.