Accelerated Depreciation Has an Advantage for Profitable Firms in That

question 62

True/False

Accelerated depreciation has an advantage for profitable firms in that it moves some cash flows forward, thus increasing their present value.On the other hand, using accelerated depreciation generally lowers the reported current year's profits because of the higher depreciation expenses.However, the reported profits problem can be solved by using different depreciation methods for tax and stockholder reporting purposes.

---

Definitions:

Always

A term indicating something occurring at all times; perpetually or invariably happening.

Reproductive Strategies

Behavioral and physiological mechanisms adopted by organisms to ensure reproductive success.

Reproductive Costs

The energetic, social, and health-related expenses incurred by an organism to produce offspring.

Evolutionary Psychology

The field of research exploring how evolution shaped human psychology.