Financial accounting 16th Edition by Jan Williams,Susan Haka,Mark Bettner ,Joseph Carcello

تمرين 57

Evergreen Mfg.s a rapidly growing company that acquires equipment every year.vergreen uses straight-line depreciation in its financial statements and an accelerated method in its tax returns.dentify all correct statements:
a.sing straight-line depreciation in the financial statements instead of an accelerated method reduces Evergreen's reported net income.
b.sing straight-line depreciation in the financial statements instead of an accelerated method increases Evergreen's annual net cash flow.
c.sing an accelerated method instead of straight-line depreciation in income tax returns increases Evergreen's cash flow from operating activities.
d.s long as Evergreen keeps growing, it will probably report more depreciation in its income tax returns each year than it does in its financial statements.