QUESTION

22. Accelerated depreciation has an advantage for profitable firms in that it moves some cash flows forward, thus inc

Category: Business
Subject: Finance
Due Date: 01/27/2016
Question Asked: 2016-01-27 19:24:07

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22. 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.

A) True

B) False

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Posted on 2016-01-27 19:24:07

User: LightspeedLearning
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...sing accelerated depreciation generally lowers the reported current year's profits becaus...

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