Could someone please answer this question from my ACCG100 course please.
At a recent seminar, a managing director of a well-known company argued that the
diminishing-balance method of depreciation was the best method to use because it had the
effect of producing a ‘nice, smooth income (profit) flow’. Discuss how this could occur, and
consider the desirability of reporting smooth profit flows. What role does/should the
accountant play in this respect?
At a recent seminar, a managing director of a well-known company argued that the
diminishing-balance method of depreciation was the best method to use because it had the
effect of producing a ‘nice, smooth income (profit) flow’. Discuss how this could occur, and
consider the desirability of reporting smooth profit flows. What role does/should the
accountant play in this respect?