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Beta Company purchased a truck on January 1, Year 1. Sigma Company also purchased a truck on the same date. The trucks were identical in
Beta Company purchased a truck on January 1, Year 1. Sigma Company also purchased a truck on the same date. The trucks were identical in every respect. Even so, Beta decided to depreciate its truck using straight-line depreciation while Sigma decided to use the double-declining-balance method. All other things being equal, Multiple Choice Sigma Company will show a greater amount of total assets on its Year 1 balance sheet than Beta will show Beta Company will show a greater amount of total assets on its Year 1 balance sheet than Sigma will show. both companies will show the same amount of total assets on their Year 1 balance sheets Sigma Company will show a larger amount of cash outflow from operating activities than Beta Company will show on it Year 2 statements of cash flows
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