When an Asset Lasts Longer Than Its Estimated Useful Life,depreciation

question 139

True/False

When an asset lasts longer than its estimated useful life,depreciation no longer should be recorded past the point at which its carrying value equals its residual value.

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Definitions:

Market-To-Book-Value Ratio

A financial ratio used to compare a company's current market price to its book value, indicating how much investors are willing to pay above the net asset value.

ROA

Return on Assets, a financial ratio indicating how profitable a company is relative to its total assets, assessing efficiency in asset use.

Debt/Equity Ratio

A financial ratio indicating the relative proportion of shareholders' equity and debt used to finance a company's assets.

ROE

The percentage of return on investments that shareholders directly benefit from, calculated by dividing net income by shareholder equity.