From year one to year two, the ratio of sales to fixed assets declined significantly. This is

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From year one to year two, the ratio of sales to fixed assets declined significantly. This is a possible indication that:

a. The client is over depreciating fixed assets.

b. The client is capitalizing costs that should be expensed.

c. The client has used debt to finance acquisitions of fixed assets.

d. The client has treated finance leases as operating leases.

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Auditing A Practical Approach with Data Analytics

ISBN: 978-1119401742

1st edition

Authors: Raymond N. Johnson, Laura Davis Wiley, Robyn Moroney, Fiona Campbell, Jane Hamilton

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Question Posted: Jan 10, 2020 07:46 AM

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From year one to year two, the ratio of sales to fixed assets declined significantly. This is

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Auditing A Practical Approach with Data Analytics

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