A Major Expenditure Increased a Truck's Life Beyond the Original

question 64

Multiple Choice

A major expenditure increased a truck's life beyond the original estimate of life. GAAP permits the expenditure to be debited to:

• A)Repairs.
• B)Accumulated depreciation.
• C)Major repairs.
• D)None of these.

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Definitions:

Return on Assets

A financial ratio indicating how efficiently a company uses its assets to generate profit.

Equity Multiplier

An equity multiplier is a financial ratio that measures the proportion of a company’s total assets financed by its shareholders' equity, demonstrating the degree of financial leverage being used.

M

Typically represents the mean or average in statistical contexts.

Arithmetic Mean

A measure of central tendency calculated by summing all the scores and dividing by the number of scores. See Mean.