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The analysts report indicated that Gaines Corp. had significantly und
[#permalink]
08 Aug 2023, 09:28
08 Aug 2023, 09:28
Expert Reply
00:00
Question Stats:
80% (00:34) correct
19% (00:36) wrong based on 26 sessions
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The analyst’s report indicated that Gaines Corp. had significantly underreported its capital depreciation; rather than remaining steady, the company’s value had actually _______.
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| Two Answers |
|---|
| A. grown |
| B. declined |
| C. underestimated | D. diminished | E. augmented |
| F. amortized |
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Re: The analysts report indicated that Gaines Corp. had significantly und
[#permalink]
10 Aug 2023, 04:00
10 Aug 2023, 04:00
Expert Reply
OE
If the company underreported its capital depreciation, then its actual value was lower than reported; instead of remaining steady, its value must therefore have decreased. Both grown and augmented are the opposite of what you're looking for, so eliminate answer (A) and (E). Neither underestimated nor amortized, which means paid off in installments, matches the predicted answer, so eliminate (C) and (F). Only declinedand diminishedmatch the word "decreased," so (B) and (D) are the correct answers.
_________________
If the company underreported its capital depreciation, then its actual value was lower than reported; instead of remaining steady, its value must therefore have decreased. Both grown and augmented are the opposite of what you're looking for, so eliminate answer (A) and (E). Neither underestimated nor amortized, which means paid off in installments, matches the predicted answer, so eliminate (C) and (F). Only declinedand diminishedmatch the word "decreased," so (B) and (D) are the correct answers.
_________________
gmatclubot
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