<p style="margin-right: 0.1in; text-indent: 0.4in; margin-top: 0.18in; margin-bottom: 0in; line-height: 100%;" align="JUSTIFY"><span style="font-size: small;"><span style="font-size: small;"><span style="font-family: Arial Narrow,sans-serif;"><em><strong>The main objective ofthis study is to obtain evidence whether manager choices to </strong></em></span></span><span style="font-size: small;"><span style="font-family: Arial Narrow,sans-serif;"><em><strong>depreciation methods, is related and affected by firm's size, leverage ratio, and account-</strong></em></span></span><span style="font-size: small;"><span style="font-family: Arial Narrow,sans-serif;"><em><strong>ing ROA. It' is assumed that manager in the small company with high leverage ratio, and </strong></em></span></span><span style="font-size: small;"><span style="font-family: Arial Narrow,sans-serif;"><em><strong>decreasing trend of accounting ROA preferred to select depreciation method which can </strong></em></span></span><span style="font-size: small;"><span style="font-family: Arial Narrow,sans-serif;"><em><strong>increase the reported earning by using the straight-line depreciation method. On the </strong></em></span></span><span style="font-size: small;"><span style="font-family: Arial Narrow,sans-serif;"><em><strong>contrary, manager in the larger company with low leverage ratio and increasing trend of </strong></em></span></span><span style="font-size: small;"><span style="font-family: Arial Narrow,sans-serif;"><em><strong>accounting ROA tend to select depreciation method which can reduce the repotted </strong></em></span></span><span style="font-size: small;"><span style="font-family: Arial Narrow,sans-serif;"><em><strong>earning by using double declining balance or accebrated depreciation method.</strong></em></span></span></span></p><p style="margin-right: 0.1in; text-indent: 0.4in; margin-top: 0.08in; margin-bottom: 0in; line-height: 100%;" align="JUSTIFY"><span style="font-size: small;"><span style="font-size: small;"><span style="font-family: Arial Narrow,sans-serif;"><em><strong>This study was conducted byselecting of 129 publiclisted manufacturing compa-</strong></em></span></span><span style="font-size: small;"><span style="font-family: Arial Narrow,sans-serif;"><em><strong>nies. The firm's size was detennined by total assets, while leverage ratio and accounting </strong></em></span></span><span style="font-size: small;"><span style="font-family: Arial Narrow,sans-serif;"><em><strong>ROA were measured by the ratio of total liabilities to total assets and ratio of operating </strong></em></span></span><span style="font-size: small;"><span style="font-family: Arial Narrow,sans-serif;"><em><strong>pinfit to average of total assets. The study concludes that there was a positive correlation </strong></em></span></span><span style="font-size: small;"><span style="font-family: Arial Narrow,sans-serif;"><em><strong>between leverage ratio and the choice of depreciation method. On the contrary, there was </strong></em></span></span><span style="font-size: small;"><span style="font-family: Arial Narrow,sans-serif;"><em><strong>no correlation between the firm's size and accounting ROA with the choice of depreciation </strong></em></span></span><span style="font-size: small;"><span style="font-family: Arial Narrow,sans-serif;"><em><strong>method. There was an effect of leverage ratio to the selection of depreciation method. On </strong></em></span></span><span style="font-size: small;"><span style="font-family: Arial Narrow,sans-serif;"><em><strong>the other hand, there was no effect between the firm's size and accounting ROA to the </strong></em></span></span><span style="font-size: small;"><span style="font-family: Arial Narrow,sans-serif;"><em><strong>selection of depreciation method</strong></em></span></span></span></p><p style="margin-top: 0.2in; margin-bottom: 0.65in; line-height: 100%;"><span style="font-size: small;"><span style="font-size: small;"><span style="font-family: Arial Narrow,sans-serif;"><em><strong>Keywords: </strong></em></span></span><span style="font-size: small;"><span style="font-family: Arial Narrow,sans-serif;"><em><strong>Depreciation method, firm size, leverage, ROA</strong></em></span></span></span></p>