Question: As you pointed out, while GAAP allows flexibility in choosing depreciation methods, financial strategy often influences decisions - especially for tax and financing planning. Though
As you pointed out, while GAAP allows flexibility in choosing depreciation methods, financial strategy often influences decisions - especially for tax and financing planning. Though GAAP depreciation differs from tax depreciation, understanding both helps businesses align internal reporting with strategic cash flow management. Students at this level should consider book vs. tax depreciation differences and their reconciliations.
how would differences between book and tax depreciation affect deferred tax assets or liabilities on the balance sheet?
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