Question: If a company uses straight-line method, what effect will have on the financial statements compared with using the accelerated depreciation method during the initial years
If a company uses straight-line method, what effect will have on the financial statements compared with using the accelerated depreciation method during the initial years of the asset's life?
A) depreciation expense will be lower, and operating profit will be higher
B) depreciation expense will be higher, and operating profit will be higher
C) depreciation expense will be higher, and operating profit will be lower
D) depreciation expense will be lower, and operating profit will be lower
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