Depreciation is especially applicable when companies try to overvalue their assets and net worth; the lower their depreciation expense, the higher the company's profits.

Question

Quizplus · Accepted Answer

This statement is true. By decreasing the depreciation expense, a company can increase their net income and inflate their profits, leading to an overvaluation of their assets and net worth.

Depreciation Is Especially Applicable When Companies Try to Overvalue Their