Which of the Following Is Not an Advantage of the Use

question 7

Multiple Choice

Which of the following is not an advantage of the use of accelerated depreciation methods for tax purposes as opposed to the straight-line method?

• A) Lower tax payments are made during the early years of the asset's life.
• B) The total amount of tax paid over the lifetime of the asset is reduced.
• C) The business has the interest-free use of deferred tax dollars until the later years of the asset's life.
• D) For many assets, the combination of decreasing depreciation expense of the asset and increasing repairs and maintenance expense tends to equalise the total periodic expense of holding the asset.

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Definitions:

Continuous Innovation

A process of making regular, incremental improvements to products, services, or processes to enhance value and meet customer needs.

Electric Toothbrush

A toothbrush that uses electric power to move the brush head, often considered more effective in reducing plaque and gingivitis than manual toothbrushes.

Disposable Lighter

A small, portable device used for creating a flame, intended for short-term use until the fuel runs out and then discarded.

Dynamically Continuous Innovation

Innovations that represent a significant change to an existing product or service, requiring a modest amount of learning or behavior change.