Activities Involved with the Fixed Assets Disposal Phase of the Fixed

question 25

Multiple Choice

Activities involved with the fixed assets disposal phase of the fixed assets processes include all of the following, except:

• A)Adjusting periodic depreciation
• B)Disposed assets are removed from the fixed asset subsidiary ledger
• C)Gains or losses resulting from disposal are computed
• D)The depreciation amounts related to the disposed assets are removed from the depreciation schedule and the fixed asset subsidiary ledger

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Definitions:

ROE

Return on Equity, a measure of financial performance calculated by dividing net income by shareholders' equity, indicating how effectively management is using a company’s assets to create profits.

Net Income

The final income of a business once expenses and taxes are removed from the total revenue.

Invested Capital

Total capital invested in a company by its shareholders and debt holders, used for calculating returns generated by a company.

Assets

Assets represent resources owned or controlled by a business or individual that are expected to produce economic value or benefit in the future.