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.

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Definitions:

Behavioral Change

Refers to the process of transforming or modifying human behaviors, often aimed at adopting more desirable or healthful habits, through various psychological and intervention strategies.

Reinforcements

In behaviorism, any event that strengthens or increases the likelihood of a behavior being repeated, which can be positive (adding a desirable stimulus) or negative (removing an aversive stimulus).

Extinction

In behavioral psychology, a process by which a conditioned response decreases or disappears as a result of repeated exposure to the conditioned stimulus without the unconditioned stimulus.

Reinforcer

Any stimulus that strengthens or increases the probability of a specific response or behavior by being delivered as a consequence of that response or behavior.