Art works as a private accountant for Conwell AeroSpace.He currently is considering the choice of an amortization method for some new manufacturing equipment.Art should realize that:
A) generally accepted accounting practices only allow one amortization method on equipment.
B) the choice of amortization methods will affect the value of assets on the balance sheet,but will have no impact on net income.
C) an amortization method that results in a greater amortization charge this year will cause the company's reported net income to be lower.
D) his choice will have no real impact on the firm's financial statements because amortization is not a true expense,it is simply an information item on the annual report.
Correct Answer:
Verified
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