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 Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter12: The Statement Of Cash Flows

Section: Chapter Questions

Problem 12.23MCE

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