A Benefit of Using an Accelerated Depreciation Method Is That

question 178

Multiple Choice

A benefit of using an accelerated depreciation method is that:

• A) It is preferred by the tax code.
• B) It yields a higher income in the early years of the asset's useful life.
• C) It yields larger depreciation expense in the early years of an asset's life.
• D) The results are identical to straight-line depreciation.
• E) It is the simplest method to calculate.

---

Definitions:

Audits

Inspections or examinations of accounts, records, or processes to assess compliance with established standards or regulations.

Interorganizational

Describes interactions or relationships that occur between two or more organizations, often involving coordination and cooperation in achieving mutual goals.

Intraorganizational

Pertaining to activities, communication, and interactions that occur within the same organization.

Exterorganizational

Exterorganizational pertains to interactions, relationships, or dynamics that occur outside of or between organizations, rather than within a single organization.