Which of the Following Measurements Would Not Be Affected by the Choice

question 22

Multiple Choice

Which of the following measurements would not be affected by the choice of depreciation methods?

• A)Debt-to-assets ratio
• B)Total assets
• C)Total cash flow from investing activities
• D)Return-on-equity ratio

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Definitions:

Cost Of Goods Sold

An expense measured as the direct costs attributable to the production of the goods sold by a company, including material and labor costs.

Work In Process Inventory

Items that are currently under production but have not yet reached completion.

Predetermined Overhead Rate

A rate calculated before a period begins, used to allocate indirect costs to products or services based on a chosen activity base such as labor hours or machine hours.

Estimated Annual Overhead Costs

Predicted yearly expenses that are not directly tied to specific products or services but are necessary for running a business.