A company has purchased an asset with a 10-year useful life. It will use an accelerated depreciation method for tax purposes. For reporting purposes, it will use straight-line depreciation because this method believed to reflect better the usage of the asset over its economic life.When applying the indirect method of calculating an entity's net operating cash flows, using financial statements prepared for tax purposes rather than accrual accounting purposes will result in

A. No effect on cash flow amounts.

B. An understatement of cash flows throughout the economic life of depreciable assets.

C. An overstatement of cash flows in the early years and then an understatement of cash flows in the later years of the economic life of depreciable assets.

D. An overstatement of cash flows throughout the economic life of depreciable assets.