Assume That Pappas Company Commenced Operations on January 1,2011,and It

question 33

Multiple Choice

Assume that Pappas Company commenced operations on January 1,2011,and it was granted permission to use the same depreciation calculations for shareholder reporting and income tax purposes.The company planned to depreciate its fixed assets over 15 years,but in December 2008 management realized that the assets would last for only 10 years.The firm's accountants plan to report the 2011 financial statements based on this new information.How would the new depreciation assumption affect the company's financial statements?

• A)The firm's reported net fixed assets would increase.
• B)The firm's EBIT would increase.
• C)The firm's reported 2011 earnings per share would increase.
• D)The firm's cash position in 2011 and 2012 would increase.

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Definitions:

Televised Aggression

Aggressive behavior that is depicted on television and can influence viewers' behavior and attitudes.

External Validity

The extent to which the results of a study can be generalized or applied to contexts outside the study setting.

Evolutionary Accounts

Explanations that detail how the process of natural selection and genetic variation have led to the development of specific biological traits and behaviors over time.

Violent Crime

Acts of crime that involve force or the threat of force against people.