Company a Uses an Accelerated Amortization Method While Company B

question 79

Multiple Choice

Company A uses an accelerated amortization 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:

Performance Management

A continuous process where managers and employees work together to plan, monitor, and review an employee's work objectives and overall contribution to the organization.

Developmental Purpose

Refers to the aim to aid in the growth or progress of individuals, organizations, or societies through education, training, or specific initiatives.

Performance Management

The process by which an organization involves its employees in improving effectiveness toward achieving company goals, including setting expectations, monitoring progress, and evaluating outcomes.

Employees' Knowledge

Refers to the information and skills that employees possess, which are critical assets to the organization's success and competitiveness.