Q7. In industries where there are rapid changes in technology related to production processes, which of the following characteristics will most likely indicate that a firm has a competitive advantage?
A) Low average age of equipment. B) Low capital expenditures. C) High earnings per share.
Q8. Two companies in the same industry are similar in all aspects except that the average age of the depreciable assets for Company B is 10 times greater than the average age of the depreciable assets for Company A. Which of the following statements is least likely accurate? Company B will have: A) a competitive advantage in the future. B) higher taxes. C) lower depreciation expense.
Q9. Ending gross investment/depreciation expense is used to estimate the average: A) age as a percent of depreciable life. B) age. C) depreciable life.
Q10. A firm using straight-line depreciation reports the following financial information: - Gross investment in fixed assets of $89,167,205.
- Accumulated depreciation of $35,341,773.
- Annual depreciation expense of $3,885,398.
The approximate age of the fixed assets is: A) 2.52 years. B) 22.95 years. C) 9.10 years.
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发表于 2009-1-19 10:14
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