Academic research has shown that the stock price of a public company isnt affected by the depreciation

Question:

Academic research has shown that the stock price of a public company isn’t affected by the depreciation method an entity uses. Why do you think this is the case? Does the depreciation method an entity uses ever matter? Explain.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Financial Accounting A Critical Approach

ISBN: 978-1259066528

4th edition

Authors: John Friedlan

See More Books

Question Posted: Feb 26, 2015 11:30 AM

See More Questions

Holly bought a house for $200,000. She put down $40,000 in cash and took out a $160,000 loan from the Midland Bank to cover the rest of the cost. However Holly found that she could not make her...
Why do you think this is the most important chapter in this book?
Do you think this is an issue worth Do you think this is an issue worth generating conflict over? What are the potential costs and benefits of Matt and Peter having an open discussion of the...
Answer Problem 6.12 for a 90% CI. Refer to the data in Table 2.13. Regard this hospital as typical of Pennsylvania hospitals. Table 2.13: Hospital-stay data
During the late 1990s, U.S. asset markets were growing rapidly, making the United States attractive to foreign savers. At the same time, strong economic growth made firms optimistic about the future,...
Why do bond prices and bond yields move in opposite directions?
A parallel-plate capacitor initially has capacitance $C$. The distance between the plates is then doubled, with a $9.0-\mathrm{V}$ battery connected. The battery is then disconnected, and the...
The recorded accounts receivable balance for Warner Company was $ 500,000. Required: For each of the following independent sets of conditions, determine the appropriate sample size for the...
a) Explain the following accounting concepts: i. Business entity Revenue realization ii. Accruals iii. iv. V. Substance over form Conservatism vi. Going concern (6 Marks) b) Classify the following...
Using the data in the following table, assume you are using a constant-dollar plan with a rebalancing trigger of $1,500. The stock price represents your speculative portfolio, and the MM mutual fund...
What effect does depreciation have on an entitys cash flow? Why is depreciation added back to net income when the indirect method of calculating cash from operations is used?
What does it mean when a capital asset is impaired? Provide two examples of how a capital asset could become impaired.
The normal capacity of McDougall Company's Die Cutting Department is 4,500 machine hours per month. At normal capacity, the standard factory overhead rate is $24.80 per machine hour, based on...
Swob Corp. purchased 20 percent of Park Corp's stock on each of the following dates: January 2, 2016; July 1, 2017; August 15, 2017; March 15, 2018; and June 2, 2018. If Swob Corp. wants to apply the...
Explain the terms supply chain and logistics.
Jean Kelley owned three limited partnership interests in 2018: How much is her passive loss deduction (against nonpassive activities) and suspended loss for each activity? 2018 Allocated Date Gain/...
Describe some of the obstacles to lean success.
Evaluate the studies which aim to establish the link between SHRM and organisational performance.
Water at 15C flows at a depth of 0.4 m with an average velocity of 6 m/s in a rectangular channel. Determine (a) The critical depth, (b) The alternate depth, (c) The minimum specific energy
Identify the Critical Infrastructure Physical Protection System Plan.
Electronic Repair Company repaired a high-definition television for Sarah Merrifield in December 2009. Sarah paid $50 at the time of the repair and agreed to pay Electronic Repair Company $50 each...
The records of Summers Building Company reveal the following information for 2009. a. Cash receipts during 2009 (including $50,000 paid by stockholders in exchange for common stock) were $220,000. b....
Treadway Dental Services gives each of its patients a toothbrush with the name and phone number of the dentist office and a logo imprinted on the brush. Treadway purchased 15,000 of the toothbrushes...
1. What is service-oriented architecture and how is it different from Web services architecture? 2. What is the role of the systems approach in the SDLC? 3. Briefly discuss the key phases of the SDLC...
1. Define the role of CRM in your own words. 2. What are the key differences between todays CRM and the early generation of CRMs? 3. How does CRM impact the companys bottom line or performance? 4....
What do you think are Thorndike's major contributions to learning theory and teaching? Share a time when you have observed Connectionism. How useful do you think the theory of Connectionism is in an...

Academic research has shown that the stock price of a public company isnt affected by the depreciation

Question:

Step by Step Answer:

The stock price of a company isnt affected by the depreciation ...View the full answer

Financial Accounting A Critical Approach

Students also viewed these Accounting questions