Average Remaining Life of a Company's Long-Term Operating Assets Is

question 156

Multiple Choice

Average remaining life of a company's long-term operating assets is computed as ________.

• A) the amount of depreciation expense divided by accumulated depreciation
• B) the amount of accumulated depreciation divided by depreciation expense
• C) the amount of depreciation expense divided by the balance of ending net fixed assets
• D) the ending balance of net fixed assets divided by depreciation expense

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Definitions:

Adjusting Journal Entry

A financial transaction recorded at the closure of an accounting cycle to properly assign earnings and expenses to the corresponding period.

Performed

Carried out or executed a task or function.

Prepaid

Refers to expenses that have been paid in advance of their due date and are recorded as assets until they are actually incurred.

Annual Rent

The total amount paid or to be paid for the use of a property or space for one year.