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The table below shows hypothetical per- minute cell phone charges for "pay- and- talk" service over several years.
-Refer to Table 2- 2. Assume that 2005 is used as the base year, with the index number = 100. The value of the index number in 2008 is calculated as follows:
Accumulated Depreciation
Accumulated depreciation represents the total depreciation expense assigned to a fixed asset over its useful life, reducing its book value.
Investments
Assets purchased with the expectation that they will generate income or appreciate in the future.
Owner's Equity
Refers to the residual interest in the assets of a company after deducting liabilities, representing the ownership interest.
Property Plant and Equipment
Durable physical assets that are utilized in running a business and are not meant to be sold.
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