The present value of tax savings from depreciation deductions from an accelerated depreciation method will be ________ those from the straight-line method.
举一反三
- Which<br/>of the following is not a change in accounting principle? () A: A<br/>change from LIFO to FIFO B: A<br/>change in estimated salvage value of depreciable asset C: A<br/>change from an accelerated depreciation method to straight-line<br/>depreciation D: A<br/>change from historical cost to fair value accounting.
- Which are the impacts of higher tax rates on net present value？ A: The tax shield effect of depreciation increase B: The tax shield effect of depreciation decrease C: the income tax increase D: the income tax decrease
- If a company wished to maintain the carrying amount in the financial statements of its non-current assets, which of the following would it be unlikely to do? A: Enter into a sale and short-term leaseback B: Account for asset-based government grants using the deferral method C: Revalue its properties D: Change the depreciation method for new asset acquisitions from 25% reducing balance to ten years straight line
- Compared with the net present value (NPV) method, the internal rate of return (IRR) method of evaluating investment projects:() A: is the preferred method for evaluating mutually exclusive projects. B: is not sensitive to the pattern or timing of the cash flows from the period. C: assumes that all cash flows from the project will be reinvested at the computed IRR.
- Which of the following would be treated under IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors as a change of accounting policy? A: A change in valuation of inventory from a weighted average to a FIFO basis B: A change of depreciation method from straight line to reducing balance C: Adoption of the revaluation model for non-current assets previously held at cost D: Capitalisation of borrowing costs which have arisen for the first time