Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. two companies (a and b) in their first year in bus

two companies (a and B) in their first year in business have identical and financial...

90.2K

Verified Solution

Question

Accounting

two companies (a and B) in their first year in business have identical and financial results. the only differences that company A depreciates its assets over 15 years using straight line depreciation and company B depreciates its assets over 10 years using straight line depreciation. (depreciation expense is the same for both financial reporting and for tax purposes.) therefore:

A) company a will report higher net income and higher net cash flow

b) company a will report lower net income and lower net cash flow

c) company a will report lower net income and higher net cash flow

d)company A will report higher net income and lower net cash flow

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students