What Effect Does Depreciation Have on the Calculation of the Rate

question 14

Multiple Choice

What effect does depreciation have on the calculation of the rate of return on total assets?

• A)affects both the numerator and denominator
• B)no effect
• C)increases the outcome
• D)decreases the outcome

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Definitions:

Diaphragmatic Breathing

Respiration in which the abdomen moves out while the diaphragm descends on inspiration.

Rib Cage

The structure formed by the rib bones and connective tissue that encloses and protects the thoracic cavity and organs.

Inspiration

The process of pulling air into the lungs, also used to describe a powerful influence on someone's mind or creativity.

Baseline

An initial set of measurements or data used as a reference point for future comparison.