Company a Uses an Accelerated Depreciation Method While Company B

question 112

Multiple Choice

company A uses an accelerated depreciation method while Company B uses the straight -line method. All other things equal, during the first few years of the asset's use, Company B will show which of the following compared to Company A?

• A) A smaller fixed asset turnover ratio and a smaller gain on asset disposal.
• B) A larger fixed asset turnover ratio and a larger gain on asset disposal.
• C) A smaller fixed asset turnover ratio and a larger gain on asset disposal.
• D) A larger fixed asset turnover ratio and a smaller gain on asset disposal.

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Definitions:

Groupware

Software or technology tools designed to facilitate collaboration and communication among team members working on a common task or project.

Virtual Teams

Groups of individuals who work together from various geographic locations and rely on electronic communication for collaboration.

Information Exchange

The sharing or transfer of data, information, or knowledge between individuals, organizations, or systems to facilitate communication or decision-making.

Management Information System

A computer system that stores and distributes information on how to successfully manage an organisation. It is usually regarded as a subset of the internal controls of a business.