In the early years of an asset's life,straight-line depreciation will cause a company to report higher profits than would be reported with an accelerated depreciation method.

Question

Quizplus · Accepted Answer

Straight-line depreciation spreads the cost of an asset evenly over its useful life, resulting in higher net income in the early years compared to accelerated depreciation methods, which allocate more depreciation expense to the early years of an asset's life.

In the Early Years of an Asset's Life,straight-Line Depreciation Will