Which of the following would increase current income but decrease future income?
A)The deferral of maintenance costs.
B)The purchase of capital assets.
C)An increase in the allowance for doubtful accounts.
D)The reduction in the estimated useful lives of assets.

Question

Quizplus · Accepted Answer

Deferring maintenance costs may increase current income by reducing expenses in the short-term, but it will decrease future income because maintenance will eventually need to be performed and may require more extensive repairs or replacements that could be costly. This could lead to unexpected expenses and disruptions in operations, which could ultimately reduce future income.

Which of the Following Would Increase Current Income but Decrease