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Which of the Following Statements Is Correct

Question 55

Multiple Choice

Which of the following statements is correct?


A) Using straight-line depreciation in comparison to an accelerated depreciation method will result in a lower reported amount of total assets at end of the first year of an asset's life.
B) Using accelerated depreciation in the first year of an asset's life will result in a higher net income during the first year compared to using the straight-line depreciation method.
C) Using an accelerated depreciation method will lead to a higher fixed asset turnover ratio for the first year.
D) Using straight-line depreciation in comparison to an accelerated depreciation method will lead to a higher book value at the end of an asset's life.

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