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:

Fine Motor Skills

Fine motor skills involve the coordination of small muscles in movements—usually involving the synchronization of hands and fingers—with the eyes.

Small Body Movements

Minor physical actions or gestures, often involuntary, that can be indicative of underlying emotions or intentions.

Motor Skills

The abilities related to the movement and coordination of the body's muscles, including both fine motor skills (small movements, such as writing) and gross motor skills (larger movements, such as walking).

Fingers

The digits on the human hand, which are essential for gripping and manipulating objects, consisting of the thumb, index, middle, ring, and little finger.