24、Assume U.S. GAAP (generally accepted accounting principles) applies unless otherwise noted.

Which of the following adjustments to the assumed useful life and assumed salvage value of a company's assets would most likely decrease the company's total asset turnover ratio?

A. Answer A

B. Answer B

C. Answer C

D. Answer D

[此贴子已经被作者于2008-11-7 13:27:57编辑过]

24、Assume U.S. GAAP (generally accepted accounting principles) applies unless otherwise noted.

Which of the following adjustments to the assumed useful life and assumed salvage value of a company's assets would most likely decrease the company's total asset turnover ratio?

A. Answer A

B. Answer B

C. Answer C

D. Answer D

 
Correct answer = B

"Analysis of Long-Lived Assets: Part II - Analysis of Depreciation and Impairment," Gerald I. White, Ashwinpaul C. Sondhi, and Dov Fried
2008 Modular Level I, Vol. 3, pp. 394-397
Study Session 9-37-b
demonstrate how modifying the depreciation method, the estimated useful life, and/or the salvage value used in accounting for long-lived assets affect financial statements and ratios
A longer useful life and higher salvage value are consistent with lower depreciation expense, which results in a higher net asset value. Asset turnover (Sales/Total assets) would decrease because sales would be constant while assets would be higher due to smaller depreciation charges. 

leverage ratio