Which of the Following Statements Is True

question 45

Multiple Choice

Which of the following statements is true?

• A) The faster a resource depreciates, the more valuable it is
• B) The slower a resource depreciates, the more valuable it is
• C) The larger a resource or asset, the more slowly it depreciates
• D) Intangible assets can have their depletion measures easily

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Definitions:

Operating Leverage

A measure that shows how revenue growth translates into growth in operating income, highlighting the impact of fixed costs.

Financial Performance

An assessment of how well a company can use assets from its primary mode of business and generate revenues.

ROE

Return on Equity; a financial ratio indicating the profitability of a company in relation to its equity capital.

EPS

Earnings Per Share; a metric that indicates the portion of a company's profit allocated to each outstanding share of common stock.