An Analyst Can Estimate the Average Total Life of Depreciable

question 88

Multiple Choice

An analyst can estimate the average total life of depreciable assets by:

• A) dividing average depreciable assets by depreciation expense for the year.
• B) dividing depreciation expense for the year by average depreciable assets.
• C) dividing average gross depreciable assets by accumulated depreciation.
• D) Subtracting depreciation expense from accumulated depreciation.

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Definitions:

Economic Income

The total value of all income received by an individual or entity, including both earned income and investment income.

Human Capital

The skills, knowledge, and experience possessed by an individual viewed in terms of their value or cost to an organization or country.

Compensating Differential

The difference in wages that compensates workers for undesirable aspects of a job, such as long hours or dangerous conditions.

Human Capital

The qualifications, know-how, and lived experiences of a person or society, assessed in terms of their profitability or cost to a business or country.