Accounting: Tools for Business Decision Making, 5th Edition

Published by Wiley
ISBN 10: 1118128168
ISBN 13: 978-1-11812-816-9

Chapter 9 - Reporting and Analyzing Long-Lived Assets - Questions: 25

Answer

Accelerated Depreciation method produces higher depreciation expenses in the early years, whereas straight line method produces equal depreciation in all the years.

Work Step by Step

Since the difference in depreciation expense in all the years is too large, the results of these companies will not be comparable.
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