Question: Exercise 13.18 (Static) METHODS AND APPLICATIONS In recent years major efforts have been made to standardize accounting practices in different countries; this is called harmonization.

Exercise 13.18 (Static) METHODS AND APPLICATIONS In recent years major efforts have been made to standardize accounting practices in different countries; this is called harmonization. In an article in Accounting and Business Research, Emmanuel N. Emenyonu and Sidney J. Gray studied the extent to which accounting practices in France, Germany, and the U.K. are harmonized. (a) Depreciation method is one of the accounting practices studied by Emenyonu and Gray, Three methods were considered- the straight-line method (9), the declining balance method (), and a combination of D & S (sometimes European firms start with the declining balance method and then switch over to the straight-line method when the figure derived from straight line exceeds that from declining balance). The data in the table (below) summarize the depreciation methods used by a sample of 78 French, German, and U.K. firms. Depreciation Methods A. Straight line (S) B. Declining Bal (D) C. (D & S) Total companies France Germany 15 1 1 10 25 26 26 UK Total 25 40 1 0 35 26 78 Chi-Square Test for Independence France Germany A. Straight line (S) 15 B. Declining Bal (D) 1 1 C. (D & S) 10 25 Total 26 26 50.894 chisquare 4 df 0.0000 UK 25 1 Total 40 3 35 78 26 P- value Click here for the Excel Data File OFF " %: AutoSave BES - DeprMeth Home Insert Draw Page Layout Formulas Data Review >> Conditional Formatting Flowe Format as Table Paste Font chegg Alignment Number Cell Styles ackboard G12 hegg B C D E F G 1 Depreciation methods used by a sample of 78 firms 2 3 Country 4 Depreciation Method France Germany UK Total 5 A. Straight Line (S) 15 0 25 40 6 B. Declining Bal (D) 1 1 1 3 7 C. (D & S) 10 25 0 35 8 Total Companies 26 26 78 9 10 11 12 13 14 15 16 17 18 19 20 26 Sheet1 Sheet2 Sheet3 + uestions Total 26 26 26 78 50.894 chisquare 4 df 0.0000 P- value Click here for the Excel Data File Use these data and the results of the chi-square analysis in the table (above) to test the hypothesis that depreciation method is independent of a firm's location (country) at the .05 level of significance. (Round your answer to 3 decimal places.) x2 Reject HO. independence. Conclude depreciation method and country are dependent Exercise 13.18 (Static) METHODS AND APPLICATIONS In recent years major efforts have been made to standardize accounting practices in different countries; this is called harmonization. In an article in Accounting and Business Research, Emmanuel N. Emenyonu and Sidney J. Gray studied the extent to which accounting practices in France, Germany, and the U.K. are harmonized. (a) Depreciation method is one of the accounting practices studied by Emenyonu and Gray, Three methods were considered- the straight-line method (9), the declining balance method (), and a combination of D & S (sometimes European firms start with the declining balance method and then switch over to the straight-line method when the figure derived from straight line exceeds that from declining balance). The data in the table (below) summarize the depreciation methods used by a sample of 78 French, German, and U.K. firms. Depreciation Methods A. Straight line (S) B. Declining Bal (D) C. (D & S) Total companies France Germany 15 1 1 10 25 26 26 UK Total 25 40 1 0 35 26 78 Chi-Square Test for Independence France Germany A. Straight line (S) 15 B. Declining Bal (D) 1 1 C. (D & S) 10 25 Total 26 26 50.894 chisquare 4 df 0.0000 UK 25 1 Total 40 3 35 78 26 P- value Click here for the Excel Data File OFF " %: AutoSave BES - DeprMeth Home Insert Draw Page Layout Formulas Data Review >> Conditional Formatting Flowe Format as Table Paste Font chegg Alignment Number Cell Styles ackboard G12 hegg B C D E F G 1 Depreciation methods used by a sample of 78 firms 2 3 Country 4 Depreciation Method France Germany UK Total 5 A. Straight Line (S) 15 0 25 40 6 B. Declining Bal (D) 1 1 1 3 7 C. (D & S) 10 25 0 35 8 Total Companies 26 26 78 9 10 11 12 13 14 15 16 17 18 19 20 26 Sheet1 Sheet2 Sheet3 + uestions Total 26 26 26 78 50.894 chisquare 4 df 0.0000 P- value Click here for the Excel Data File Use these data and the results of the chi-square analysis in the table (above) to test the hypothesis that depreciation method is independent of a firm's location (country) at the .05 level of significance. (Round your answer to 3 decimal places.) x2 Reject HO. independence. Conclude depreciation method and country are dependent

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