Multiple Choice
Which of the following statements is not true?
A) CCA will be the same whether a company uses the straight-line, diminishing-balance, or units-of-production method.
B) Cash flow will be affected by the use of different depreciation methods.
C) Over the life of the asset, total depreciation expense will be the same whether a company uses the straight-line, diminishing-balance, or units-of-production method.
D) The diminishing-balance depreciation method will result in lower profit compared to the straight-line depreciation method in the early years.
Correct Answer:

Verified
Correct Answer:
Verified
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