The management of "Scott" company decided to "beautify" the financial statements by changing the depreciation period of the equipment from 8 years to 15 years. What will be the effect of this change on the company's financial statements? A. Cash flow from current operations will increase. B. Net profit will decrease. third. Cash flow from investing activities will decrease. d. Net profit will increase. e. Answers A to D are incorrect.

The management of "Scott" company decided to "beautify" the financial statements by changing the depreciation period of the equipment from 8 years to 15 years. What will be the effect of this change on the company's financial statements? A. Cash flow from current operations will increase. B. Net profit will decrease. third. Cash flow from investing activities will decrease. d. Net profit will increase. e. Answers A to D are incorrect.

Financial Reporting, Financial Statement Analysis and Valuation

8th Edition

ISBN:9781285190907

Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Chapter8: Investing Activities

Section: Chapter Questions

Problem 1QE

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