Which of the following typically results from using straight-line depreciation in the set of books for shareholders?
A)net income appears higher during the early periods of depreciation.
B)less money is paid to the Canada Revenue Agency.
C)financial managers have more funds from operations available.
D)depreciable assets last for a longer period of time.

Question

Quizplus · Accepted Answer

Straight-line depreciation allocates a fixed amount of the asset's cost as an expense for each accounting period, resulting in lower depreciation expenses and higher net income during the early periods of depreciation.

Which of the Following Typically Results from Using Straight-Line Depreciation