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A company uses straight-line depreciation for both financial and tax reporting purposes for plant and equipment. What would be the most likely effect if the
A company uses straight-line depreciation for both financial and tax reporting purposes for plant and equipment. What would be the most likely effect if the company were to use an accelerated depreciation method instead?
Cash flow from operating activities would increase
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Carrying values of assets would increase | ||
Total asset turnover would decrease
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Deferred tax assets would increase
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Net profit margin would increase |
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