If income tax effects are ignored, accelerated depreciation methods
A) provide funds for the earlier replacement of assets.
B) increase funds provided by operations.
C) tend to offset the effect of steadily increasing repair and maintenance costs on the income statement.
D) tend to decrease the current ratio.

Question

Quizplus · Accepted Answer

Accelerated depreciation methods allocate more depreciation expense in the earlier years of an asset's life, which can help offset increasing repair and maintenance costs as the asset ages, stabilizing the income statement over time.

If Income Tax Effects Are Ignored, Accelerated Depreciation Methods