Question

Ignoring income tax effects, accelerated depreciation methods can...(a)generate funds for the earlier replacement of fixed assets.(b)decrease funds provided by operations.(c)offset the effect of increasing repair and maintenance costs as the asset ages.(d)decrease the fixed asset turnover ratio.

Answer 1

the correct answer is option C

(c)offset the effect of increasing repair and maintenance costs as the asset ages

Explanation: As depreciation expense decrease overtime, repairs and maintenance expense increases.