Which of the Following Not Is an Advantage of the Use

question 34

Multiple Choice

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

• A) The total amount of tax paid over the lifetime of the asset is reduced.
• B) The business has the interest-free use of deferred tax dollars until the later years of the asset's life.
• C) Lower tax payments are made during the early 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.

---

Definitions:

Neurotic

Refers to a personality trait characterized by mood swings, anxiety, worry, and other forms of emotional distress.

Medical History

A comprehensive record of a patient’s past medical conditions, treatments, surgeries, allergies, and other relevant health information.

Conscientiousness

A personality trait characterized by organization, responsibility, hard work, and reliability, often associated with high performance and success in various life areas.

Cultural Norms

Shared expectations and rules that guide behavior of people within social groups.