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 the net profit of a company as it is a non-cash expense that reduces the value of an asset over time. A higher depreciation expense will decrease net profit, while a lower depreciation expense will increase net profit. However, it does not directly affect cash or accounts receivable.

Changing the Rate of Depreciation Affects