Ventaz Corp

question 107

Multiple Choice

Ventaz Corp.purchased assets for its overseas branch for $10,000.The rate of conversion at the time of purchase of asset was $1.306 / Euro.What is the value of assets after two years if the rate is $1.508 / Euro and the average rate being $1.407 / Euro?

• A) 7,657 Euros
• B) 5,080 Euros
• C) 4,070 Euros
• D) 3,780 Euros

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Definitions:

Fixed Asset Turnover Ratio

A financial metric used to evaluate how effectively a company uses its fixed assets to generate sales.

Operating Income

The profit realized from a business's core operations, calculated before interest and taxes.

Average Fixed Assets

The mean value of a company's fixed assets, like plant and equipment, calculated over a specific period of time.

Double-Declining Balance Method

A method of accelerated depreciation calculating an asset's loss of value at double the rate of the straight-line depreciation method.