Which of the following methods of depreciation results in the highest cash flow?
A) straight-line
B) diminishing-balance
C) units-of-production
D) all of these result in the same cash flow

Question

Quizplus · Accepted Answer

Depreciation methods do not affect cash flow because depreciation is a non-cash expense. The cash outlay for the asset occurs at the time of purchase, not during the depreciation process.

Which of the Following Methods of Depreciation Results in the Highest