Non M.

asked • 03/29/21

About depreciation methods


Assuming that company X following straight line depreciation method and company Y is using double declining method. What will be the effect on both net income and total assets at early years?               


A)Company X will record higher net income and higher total assets compared to company Y.                                B)Company X will record higher net income, but lower total assets compared to company Y. 

C)Company X will record lower net income and lower total assets compared to company Y. 

D)Company X will record lower net income, but higher total assets compared to company Y. 


1 Expert Answer

By:

Aakash M. answered • 03/31/21

Tutor
New to Wyzant

Undergraduate Teaching Assistant (Accounting) at UCSB

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