Your Company Buys a Computer Server,which It Expects to Use

question 25

Multiple Choice

Your company buys a computer server,which it expects to use for eight years and then sell when it upgrades to a more powerful model.The server would probably be used by the business that buys it at that time for another three years.The useful life of the server for your company is:

• A)the total length of time the server is used to produce output for your company.
• B)eleven years.
• C)the total length of time until the server can no longer function.
• D)three years.

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Definitions:

Debt-Equity Ratio

A proportionality indicator for assessing how company assets are funded through debt and equity.

Total Debt Ratio

A financial metric that compares an organization's total liabilities to its total assets, used to assess its leverage and financial health.

Total Debt Ratio

A financial ratio that compares a company's total liabilities to its total assets, indicating the proportion of a company's assets financed through debt.

Construct Validity

The degree to which a test measures what it claims, or purports, to be measuring.