A company uses the same depreciation method as other firms in the same industry.Because of this,investors will have enhanced comparability of the financial reporting results.

Question

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Depreciation is a significant accounting factor that affects a company's financial statements, and using the same depreciation method as other firms in the industry enhances comparability of financial reporting results. This makes it easier for investors to analyze and compare financial information across companies in the same industry.

A Company Uses the Same Depreciation Method as Other Firms