Multiple choice

Directions: State whether the following statement is True Or False. Accelerated depreciation, which means a large amount of depreciation is claimed as a deduction in the early years of a project’s life is not legally valid.

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Accelerated depreciation is a perfectly legal accounting method allowed by tax authorities in many jurisdictions to encourage investment by providing larger tax shields in the early years of an asset's life.

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