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Inessa05 [86]
3 years ago
10

Company A uses an accelerated depreciation method while Company B uses the straight-line method. All other things being equal, d

uring the first few years of the asset's use, Company B will show which of the following compared to Company A?
a. A smaller fixed asset turnover ratio and a larger gain on asset disposal.
b. A larger fixed asset turnover ratio and a smaller gain on asset disposal.
c. A smaller fixed asset turnover ratio and a smaller gain on asset disposal.
d. A larger fixed asset turnover ratio and a larger gain on asset disposal.
Business
1 answer:
babymother [125]3 years ago
5 0

Answer:

d. A larger fixed assets turnover ratio and a larger gain on asset disposal

Explanation:

Accelerated depreciation is a method of depreciation whereby the book value of an asset is rapidly depreciated or reduced i.e at an accelerated rate.

This method usually minimizes taxable income in the initial years as a higher amount of depreciation is claimed.

Fixed assets turnover ratio refers to what percentage of net sales is attributable to an entity's fixed assets. It is expressed as:

\frac{Net\ Sales}{Average\ Fixed\ Assets}

Gain on sale of asset disposal = Sale value - Book Value

Book Value =  Cost less accumulated depreciation till date

As can be seen, Average fixed assets balance would reduce thereby increasing fixed assets turnover ratio.

Similarly, due to higher depreciation charged, Book Value would be comparatively less, which would lead to larger gain on assets disposal in the initial years.

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· No clear separation of governmental powers.
ankoles [38]

Answer: The answer is constitutional monarchy

Explanation:

The question is based on constitutional monarchy and practising a parliamentary system of government. A constitutional monarchy is a situation whereby the king is the head of state recognized by the constitution. While the prime minister is the head of government. The prime minister in a parliamentary system of government is a member of parliament elected by his constituency to represent to represent them in the parliament. For example Britain, Belgium,Australia.

The person who assume the position of prime minister is usually the leader of the party who won the majority seat in the parliament. In this government, the executive is also an integral part of the parliament, and before anyone can become a minister under such a government such a person must have won a seat in the parliament also to represent his or her constituency in the parliament. In this system, the king or Queen is the ceremonial head of state.While the prime minister is the real head of government who oversee the day to day affairs of the government. In this system of government, the government seize to exist when a vote of no confidence is passed on such a government on the floor of the house.when this happened, the prime minister must resign and call for new election into the parliament.

4 0
3 years ago
A firm has issued 10 percent preferred​ stock, which sold for​ $100 per share par value. The cost of issuing and selling the sto
rusak2 [61]

Answer:

The cost of preferred stock is 10.2%

Explanation:

The actual amount realized from issuing the preferred of $100 per share par value is the par value less cost of issuing and selling stock of $2 per share, in other words,$98($100-$2) was realized per share from the issuance.

Having known the net amount realized, the cost of preferred stock can be calculated as follows:

cost of preferred stock =return on preferred stock/net amount realized

return is 10% of $100(par value), i.e $10 per share

cost of preferred stock =$10/$98=10.2%

Note that preferred is not tax deductible like debt financing , hence the rate of tax given is not considered in determining the cost of preferred stock.

8 0
3 years ago
Question 8 of 20
EastWind [94]

The individual that makes the investment that has highest risk is Norville because he invested 75 percent of his portfolio in stocks.

<h3>What investment are considered high risk?</h3>

High risk investment refers to an investment that have large chance of loss of capital and high chance of a devastating loss.

Daphne invests in mutual funds which offeres low risk, Velma  and Fred spread their risk to reduce loss if any occur.

Therefore, the Option B is correct.

Read more about High risk investment

<em>brainly.com/question/2060019</em>

4 0
2 years ago
Read 2 more answers
Denise owns several computer repair shops across the Northeast, and she has set a goal for her company of cutting costs in all h
liq [111]

Answer: strategic goal

 

Explanation: In simple words, strategic goals refers to those goals under which an organisation clearly identifies the results they intend from their efforts.

In the given case, Denise has made an ultimate goal and had decided to make efforts to cut costs for all locations in three years. Hence she has decided the goal for which all the actions will be directed towards.

   Hence from the above we can conclude that Denise has set a strategic goal.

8 0
3 years ago
Brainliest! What type of competitive situation is this?
vladimir2022 [97]
The answer to your questions letter C because it's multiple people
7 0
3 years ago
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