?Assume that two firms are both following generally accepted accounting principles.Both firms commenced operations two years ago with $1 million of identical fixed assets,and neither firm sold any of those assets or purchased any new fixed assets.The two firms would be required to report the same amount of net fixed assets on their balance sheets as those statements are presented to investors.

Question

Quizplus · Accepted Answer

One firm might choose to use straight-line depreciation,the other an accelerated method,and this would lead to differences in reported depreciation and therefore reported net fixed assets.

?Assume That Two Firms Are Both Following Generally Accepted Accounting