Analytical Procedures for Depreciation Expense and Accumulated Depreciation Would Include

question 32

Multiple Choice

Analytical procedures for depreciation expense and accumulated depreciation would include all of the following ratios except

• A)current depreciation as a percentage of previous year depreciation.
• B)fixed assets as a percentage of previous year assets.
• C)accumulated depreciation as a percentage of gross assets each year.
• D)average cost of assets.

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Definitions:

Interest Rate Parity

An economic theory stating that the difference between interest rates in two countries is equal to the expected change in exchange rates between their currencies.

Relative PPP

Relative Purchasing Power Parity, a theory which states that the rate of inflation between two countries will be offset by an equal but opposite change in the exchange rate.

International Fisher

An economic theory stating that the difference in nominal interest rates between two countries is directly proportional to the expected change in the exchange rates between their currencies.

Strengthening

Generally refers to the process of becoming stronger or more firm, often used in financial contexts to describe currencies or economies that are improving in value or performance.