financial statements5

financial statements5 - Changes in depreciation i The...

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Changes in depreciation Answer: c Diff: E i . Which of the following are likely to occur if Congress passes legislation that forces Carter Manufacturing to depreciate their equipment over a longer time period? a. The company’s physical stock of assets would increase. b. The company’s reported net income would decline. c. The company’s cash position would decline. d. All of the statements above are correct. e. Statements b and c are correct. Changes in depreciation Answer: d Diff: E ii . Assume that a company currently depreciates its fixed assets over 7 years. Which of the following would occur if a tax law change forced the company to depreciate its fixed assets over 10 years instead? a. The company’s tax payment would increase. b. The company’s cash position would increase. c. The company’s net income would increase. d. Statements a and c are correct. e. Statements b and c are correct. Changes in depreciation
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financial statements5 - Changes in depreciation i The...

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