Everett, Inc. Information for Everett, Inc. for 2011 and 2010 Is Presented

question 11

Multiple Choice

Everett, Inc.
Information for Everett, Inc. for 2011 and 2010 is presented below. Everett uses the straight-line depreciation method.

- Refer to the information provided for Everett, Inc. Using the data for 2011, determine the average age of Everett's fixed assets.

• A) 1.60 years
• B) 3.50 years
• C) 4.00 years
• D) 10.00 years

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Definitions:

Economic Profits

The financial difference between what a business earns in total revenue and what it spends, considering both explicit and indirect costs.

Implicit Costs

The opportunity costs involved in using resources that a firm already owns, for which it does not make a direct payment.

Accounting Profits

The total revenue of a business minus the explicit costs associated with producing goods or services, not accounting for implicit costs.

Economic Profits

The variance between a company's overall earnings and the sum of its explicit and implicit expenditures.