28．Assume U.S. GAAP (generally accepted accounting principles) applies unless otherwise noted.

All else equal, compared with using the straight-line method of depreciation, using an accelerated method of depreciation in the early years of an asset抯 life would most likely result in a decrease in the firm抯:

Select exactly 1 answers from the following:
A. shareholders?equity.
B. asset turnover ratios.
C. cash flow from operations.
D. cash flow from investing activities.
答案和详解如下！
Feedback: Correct answer: A

The Analysis and Use of Financial Statements, 3rd edition, Gerald I. White, Ashwinpaul C. Sondi and Dov Fried (Wiley, 2003), pp. 265

2006 Modular Level I, Vol. II, pp. 834-835

Study Session 9-41-a

identify the different depreciation methods, discuss how the choice of depreciation method affects a company抯 financial statements, ratios, and taxes, explain the role of depreciable lives and salvage values in the computation of depreciation expenses, and compute and describe how changing depreciation methods or changing the estimated useful life or salvage value of an asset affects financial statements and ratios

An accelerated method of deprecation produces greater expenses in the early years and lowers net income, which in turn lowers the retained earnings resulting in a decrease in shareholders?equity.

b

B