Most firms choose accelerated depreciation methods because ____.
A) reported net income is higher
B) tax payments are made sooner, resulting in a lower deferred tax liability
C) operating expenses are correspondingly reduced
D) income taxes are deferred

Question

Quizplus · Accepted Answer

Accelerated depreciation methods allow firms to depreciate assets more quickly in the early years of an asset's life, leading to higher depreciation expenses initially. This reduces taxable income in those years, thereby deferring income taxes to later periods.

Most Firms Choose Accelerated Depreciation Methods Because ____