The Average Remaining Life of a Company's Assets Is Computed

question 73

True/False

The average remaining life of a company's assets is computed as the balance of ending net fixed assets divided by depreciation expense.

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Definitions:

Dividends Declared

Profit distributed to shareholders that the company's board of directors has committed to pay out.

Shareholders' Equity

The residual interest in the assets of a corporation after deducting its liabilities; often referred to as stockholders' equity or owners' equity.

Owners

Individuals or entities that hold ownership in a company, possessing rights to its assets and profits.

Total Assets

The sum of all owned resources with economic value that are expected to provide future benefits to a business.