Which of the Following Are Correct

question 15

Multiple Choice

Which of the following are correct?
I. If a company uses straight-line depreciation for financial reporting purposes, it is very likely they have a deferred tax liability with respect to its depreciable assets.
II. Straight line depreciation yields an increasing rate of return on book value over the life of asset.
III. Straight line depreciation results in lower tax payments than accelerated depreciation methods over the life of an asset.
IV. If a company revises its estimate of the useful life of an asset upwards this will decrease annual depreciation expense.

• A) I, II, III and IV
• B) I, II and IV
• C) I, II and III
• D) I and IV

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Definitions:

Characteristics

Qualities or features that distinguish an individual, group, or thing; often used to identify and categorize.

Disorganized Schizophrenia

A subtype of schizophrenia characterized by disorganized speech and behavior, as well as inappropriate emotional responses.

Symptoms

Physical or psychological signs indicating the presence of a disease, disorder, or condition, often prompting individuals to seek medical attention.

Somatoform Disorder

A mental disorder characterized by physical symptoms that suggest physical illness or injury, which cannot be explained fully by a general medical condition or by the direct effect of a substance, and are not attributable to another mental disorder.