Accelerated depreciation will _____ the cash flow per share in early years when compared to straight-line depreciation and _____ the cash flow per share in the later years.

Question

Quizplus · Accepted Answer

Accelerated depreciation results in higher depreciation expense in the earlier years and lower in the later years when compared to straight-line depreciation. This results in increased cash flow per share in the earlier years and decreased cash flow per share in the later years, making option B the correct choice.

Accelerated Depreciation Will _____ the Cash Flow Per Share in Early