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Single choice 42) How will the profits of a company that uses accelerated depreciation compare to the use of straight line depreciation in the early
Single choice 42) How will the profits of a company that uses accelerated depreciation compare to the use of straight line depreciation in the early years of the asset's life? Profits will be lower Profits will be higher Profits will be the same O It is not possible to determine how the profits may be related Single choice 43) When analyzing the return on capital employed (ROCE), which of the following would make the analysis less informative? 1. The company has large unused cash reserves 2. The company's debt balances are significantly larger than its equity O 1 only 2 only Both 1 and 2 Neither 1 or 2
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