When Comparing Expensing or Capitalizing (With Straight-Line Depreciation) Software, Return

question 68

Multiple Choice

When comparing expensing or capitalizing (with straight-line depreciation) software, return on assets

• A) will decrease over time using capitalization.
• B) will increase over time using capitalization.
• C) will be constant using expensing.
• D) will initially be higher under expensing.

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