If AMRC switched to accelerated depreciation from straight-line, what would be the most likely effect in the next year. a. net profit margin would decrease b. total asset turnover would increase c. CFO would increase more depreciation = less net income = less net profit margin less asset = higher asset turnover more depreciation = less tax = higher CFO All of these choices seem correct. The book said C but I don’t understand what’s wrong with A and B?
You are correct. See CFAI errata.
Thanks AndrewUNH 