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:

CRM System

Customer Relationship Management System, a technology for managing all your company's relationships and interactions with current and potential customers.

Customer Personalization

Tailoring a service or product to accommodate specific interests or preferences of individual customers, often using data analytics.

Individualized Offers

Marketing strategy that involves creating and presenting offers tailored to the needs, preferences, or historical behaviors of individual customers.

Lifetime Value

The total worth to a business of a customer over the whole period of their relationship.