Using a Smaller Salvage Value When Calculating Depreciation Expense for Long-Term

question 80

Multiple Choice

Using a smaller salvage value when calculating depreciation expense for long-term assets ________.

• A)increases earnings per share
• B)decreases earnings per share
• C)has no effect on earnings per share
• D)decreases shareholders' equity

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Definitions:

Sampling Distribution

The probability distribution of a statistic based on a large number of samples or simulations.

Nonnormal Population

Refers to a population that does not follow a normal distribution, which can affect the choice of statistical methods used for analysis.

Sample Measurements

Observations or data collected from a subset of a population for the purpose of statistical analysis.

Sampling Distribution

A probability distribution of a statistic obtained from a large number of samples drawn from a specific population.