The Book Value of an Asset That Cost $20,000 and Has

question 115

Multiple Choice

The book value of an asset that cost $20,000 and has accumulated depreciation of $6,000 is:

• A)$20,000.
• B)$ 6,000.
• C)$26,000.
• D)$14,000.

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Definitions:

Total Asset Turnover

A financial ratio that measures the efficiency of a company's use of its assets in generating sales revenue.

Inventory Turnover

A measure that reveals the frequency at which a firm's stock is sold and replenished within a given timeframe, demonstrating the effectiveness of its inventory control.

Accounts Receivable Turnover

A financial ratio indicating how many times a company collects its average accounts receivable balance in a given period.

Year 2

Designates the second fiscal or calendar year in a sequence of years, crucial for tracking progress, budgets, and planning in various contexts.