Accounting: What the Numbers Mean 11th Edition by Wayne McManus,Daniel Viele,David Marshall

Exercise 26

Financial statement effects of depreciation-straight-line versus accelerated methods Assume that a company chooses an accelerated method of calculating depreciation expense for financial statement reporting purposes for an asset with a five-year life.
Required:
State the effect (higher, lower, no effect) of accelerated depreciation relative to straightline depreciation on:
a. Depreciation expense in the first year.
b. The asset's net book value after two years.
c. Cash flows from operations (excluding income taxes).