8586

Correct answer = A

"Analysis of Long-Lived Assets: Part II - Analysis of Depreciation and Impairment," Gerald I. White, Ashwinpaul C. Sondhi, and Dov Fried
2008 Modular Level I, Vol. 3, p. 391
Study Session 9-37-a
demonstrate the different depreciation methods and explain how the choice of depreciation method affects a company's financial statements, ratios, and taxes
An accelerated method of depreciation 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.