Roger Margotta, the CFO of Brainchild, Inc

问题单项选择题

Roger Margotta, the CFO of Brainchild, Inc., is considering several alternative methods of depreciation for long-term assets. With respect to double-declining method of depreciation, which of the following statements is the most accurate（）

A. Current ratio will increase over the life of the asset.

B. Asset turnover ratio will decrease over the life of the asset.

C. Return on Investment will increase over the life of the asset.

答案

参考答案：C

解析：

With the use of any accelerated method of depreciation, the deductions in assets and net income are greatest in the early years. For DDB, the greatest impact is year 1. After year 1, net income will increase, increasing ROI.