Changing the rate of depreciation affects:

Name: Changing the rate of depreciation affects:
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Changing the rate of depreciation affects net profit, as it directly impacts the amount of expenses recognized on the income statement. A higher depreciation rate reduces net profit, while a lower rate increases net profit. The change does not affect cash or other working capital accounts directly.

Changing the Rate of Depreciation Affects