If DLeon starts depreciating fixed assets over 7 years rather than 10 years, would that affect (1) the physical stock of assets, (2) the balance sheet account for fixed assets, (3) the companys reported net income, and (4) the companys cash position Assume the same depreciation method is used for s...

This would have no effect on the physical stock of the assets however the bala ...

If DLeon starts depreciating fixed assets over 7 years rather than 10 years, would that affect (1)

Question:

If D’Leon starts depreciating fixed assets over 7 years rather than 10 years, would that affect (1) the physical stock of assets, (2) the account for fixed assets, (3) the company’s reported net income, and (4) the company’s cash position? Assume the same depreciation method is used for stockholder reporting and for tax calculations and that the accounting change has no effect on assets’ physical lives.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...