Company a Uses an Accelerated Depreciation Method While Company B

Multiple Choice

Company A uses an accelerated depreciation method while Company B uses the straight-line method.All other things being equal,during the first few years of the asset's use,Company B will show which of the following compared to Company A?

A) A smaller fixed asset turnover ratio and a smaller gain on asset disposal.
B) A larger fixed asset turnover ratio and a larger gain on asset disposal.
C) A smaller fixed asset turnover ratio and a larger gain on asset disposal.
D) A larger fixed asset turnover ratio and a smaller gain on asset disposal.