Q1. The following information has been gathered regarding a firm that uses straight line depreciation. - Gross plant and equipment $1,250,000
- Depreciation expense $235,000
- Accumulated depreciation $725,000
The average depreciable life of plant and equipment is: A) 5.32 years. B) 3.09 years. C) 8.40 years.
Q2. Average remaining useful life of the plant and equipment is: A) 2.23 years. B) 3.09 years. C) 5.32 years.
Q3. The average age of plant and equipment is: A) 1.40 years. B) 3.09 years. C) 5.32 years.
Q4. A manufacturing firm reports the following in its financial statements: - Gross plant and equipment: $2,700,000.
- Depreciation expense: $235,000.
- Accumulated depreciation: $1,850,000.
The average useful life of plant and equipment is:
A) 11.49 years. B) 19.36 years. C) 7.87 years.
Q5. The average age of plant and equipment is:
A) 1.33 years. B) 7.87 years. C) 11.49 years.
Q6. An analyst will most likely use the average age of depreciable assets to estimate the company’s:
A) near-term financing requirements. B) cash flows. C) earnings potential.
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发表于 2009-1-19 10:13
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