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What line item on petrobras income statement is most affect

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Question 1: What line item on Petrobras' income statement is most affected by their depreciation policy? Explain why.

Question 2: Aside from comparing Petrobras' depreciation policy assumptions to those of their competitors, what other "red flags" might one look for in order to assess whether Petrobras is overly conservative or overly aggressive in taking depreciation expenses? Is there any evidence of these issues on Petrobras' financial statements?

Reference no: EM132690104

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