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A company comparing the use of Straight Line Depreciation (SLD) and Accelerated Depreciation (DDB) in the first year subsequent to the purchase of a capital
A company comparing the use of Straight Line Depreciation (SLD) and Accelerated Depreciation (DDB) in the first year subsequent to the purchase of a capital asset would find:
- The Fixed Asset Turnover ratio is highest using SLD.
- The Fixed Asset Turnover ratio is highest using DDB.
- No difference in the Fixed Asset Turnover ratio.
- The Total Asset Turnover ratio is highest using SLD.
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Fundamental Managerial Accounting Concepts
Authors: Edmonds, Tsay, olds
6th Edition
71220720, 78110890, 9780071220729, 978-0078110894
