All else the same, which of the following ratios would be unaffected by any change of the depreciation method?

Name: All else the same, which of the following ratios would be unaffected by any change of the depreciation method?
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The price-sales ratio would be unaffected by any change in the depreciation method because it is based on sales revenue, which does not include depreciation. Depreciation affects earnings and cash flow, but not sales revenue.

All Else the Same, Which of the Following Ratios Would