Company a Uses an Accelerated Depreciation Method While Company B

question 119

Multiple Choice

Company A uses an accelerated depreciation method while Company B uses the straight-line method.All other things being 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.

Recognize nonresponse bias and its effect on survey outcomes.

Distinguish when undercoverage can lead to biased survey results.

Understand how response bias modifies survey feedback.

Evaluate methodologies for data collection and their susceptibility to biases.