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When a firm uses an accelerated method of depreciation for tax reporting in order to minimize its tax burden, it will not really save any tax dollars in the end because depreciation method merely changes the timing of the depreciation expenses but not the total___________

Respuesta :

Manetho

Answer:

False

Explanation:

Answer: False

Logic: An accelerated method of taxing brings about real savings. When we pay lower taxes (meaning, TAXABLE INCOME IS LOWER) early on, This allows the company to REINVEST the additional cash flows in additional operating assets. In addition to this, the present value of a dollar of tax in the future is worth less than a dollar today. hence the given statement is false.

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