Wall Street Prep Exam 2024 Questions and Answers (Scored A)

Wall Street Prep Exam 2024 Questions and Answers (Scored A) Wall Street Prep Exam 2024 Questions and Answers (Scored A) Wall Street Prep Exam 2024 Questions and Answers (Scored A) Wall Street Prep Exam 2024 Questions and Answers (Scored A) Do companies prefer straight-line or accelerated depreciation? - ANSWER-For GAAP reporting purposes, companies generally prefer straight-line depreciation. That's because a company will record lower depreciation in the early years of the asset's life than if they had used accelerated depreciation. As a result, companies using straight-line depreciation will show higher net income than under accelerated depreciation. Do companies depreciate land? - ANSWER-No, land is considered to have an indefinite life and is not depreciated. Can companies amortize goodwill? - ANSWER-Under GAAP, public companies are not allowed to amortize goodwill. Instead, it must be tested annually for impairment.