CFA Practice Question

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CFA Practice Question

Accelerated depreciation methods are less commonly used for financial reporting purposes than straight-line depreciation methods are. True or False?
Correct Answer: True

As cited in the Accounting Trends & Techniques survey (1999), most firms use straight-line depreciation for financial reporting purposes. It is easy to compute and results in the same amount of expense being charged against earnings each year. Accelerated methods are generally used for tax purposes.

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danlan Accelerated methods are good for tax deduction
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