R22 EOC #2 - Accelerated depreciation
If AMRC switched to accelerated depreciation from straight-line, what would be the most likely effect in the next year.
a. net profit margin would decrease
b. total asset turnover would increase
c. CFO would increase
more depreciation = less net income = less net profit margin
less asset = higher asset turnover
more depreciation = less tax = higher CFO
All of these choices seem correct. The book said C but I don’t understand what’s wrong with A and B? |
发表于 2013-4-10 17:55
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