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- What is depreciation? Why are depreciation methods important in the business arena? Explain the differences among the depreciation methods covered in chapter 10. Based on your evaluation, what is the best method of depreciation and why? What is the least used and Why?Can depreciation be a profit management tool for the enterprise? Please explain with reason.Is the company doing a good job of earning a return on its assets? Explain.
- How did taking depreciation expenses help the client in the business manage their assets?In view of the investor, what is the best type of depreciation method? Justify your answer in terms of computation.Illustrate the rules and laws that govern asset depreciation and the methods that accountants use to allocate the depreciation expenses?
- Why would companies choose one method of accounting for Depreciation over another method? What are the benefits of each depreciation type?Does the management of long term assets benefit the business in anyway? Are there tax benefits as well?What does the word depreciation means to a business or individual and what are the various types of depreciation methods?
- Select all that are true with respect to depreciation. Group of answer choices Depreciation is a cash flow outflow at the time it is recorded in the financial statements Depreciation itself is not a cash flow Accounting depreciation impacts cash flow, Tax depreciation does not Accounting depreciation does not impact cash flow, Tax depreciation does impact cash flow The depreciation tax shield is a relevant cash flow for decision makingWhy are these long-term assets important to the success of your employer or your future business?If a company wanted to take advantage of depreciation expenses, how would this company accomplish this? What would be the advantages? Are there any disadvantages?
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