You are comparing three companies that use different depreciation methods.Which of the following would help you the most in making a comparison of the companies?
A)The average earnings per share for the quarter
B)Prospective cash receipts
C)Claims to resources
D)Disclosure of accounting policies

Question

Quizplus · Accepted Answer

Disclosure of accounting policies would be the most helpful as it would provide information on the specific depreciation methods used by each company and allow for a more accurate comparison.

You Are Comparing Three Companies That Use Different Depreciation Methods