Once an Asset Is Fully Depreciated,it May Not Be Used

question 141

True/False

Once an asset is fully depreciated,it may not be used any more,but must be sold or disposed of.

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Definitions:

Present Value Factor

A coefficient used to calculate the present value of a future amount of money or stream of cash flows, based on a specific discount rate.

Cash Payback Period

Cash Payback Period is the amount of time it takes for an investment to generate enough cash flows to recover its initial cost.

Desired Rate

An objective or target rate, often referring to performance metrics, interest rates, or return on investment goals set by an individual or organization.

Average Rate of Return

The average rate of return is a financial ratio that calculates the return, typically on an investment, over a specific period of time expressed as a percentage of the initial cost.