If a firm uses straight line depreciation instead of accelerated depreciation, the effect on the following ratios will be: (CFA Adapted):

PP&E (Fixed Asset) Turnover = Sales divided by Fixed Assets

Liabilities to Equity = Liabilities divided by Equity

Group of answer choices

a.PP&E Turnover will be higher and Liabilities to Equity will be lower

b.PP&E Turnover will be lower and Liabilities to Equity will be lower

c.PP&E Turnover will be lower and Liabilities will be higher

d.PP&E Turnover will be the same and Liabilities will be lower

e.PP&E Turnover will be lower and Liabilities to Equity will be the same

PP&E Turnover will be higher and Liabilities to Equity will be higher