Company a Uses an Accelerated Depreciation Method While Company B

question 49

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:

MAO Inhibitors

Monoamine Oxidase Inhibitors are a class of antidepressant drugs that work by preventing the breakdown of monoamine neurotransmitters, increasing their availability in the brain.

Disinhibition Theory

A psychological theory suggesting that reduced inhibition of impulses or behaviors can lead to an increase in those behaviors, particularly in social or emotional contexts.

Alcohol Use

The consumption of beverages containing ethanol, which can have both social and addictive aspects, impacting health and behavior.

Substance Abuse

A pattern of drug use in which people rely on a drug chronically and excessively, allowing it to occupy a central place in their life.