In Computing the Return on Average Investment of a Particular

question 2

Multiple Choice

In computing the return on average investment of a particular asset,the asset's annual depreciation expense may be viewed as:

• A)An increase in the average amount invested over the life of the asset.
• B)An increase in the asset's carrying value each year.
• C)A recovery of the amount originally invested in the asset.
• D)A decrease in the asset's net cash flows.

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Definitions:

Federal Government

The national government of a federal state, which shares sovereignty with its subdivisions and has powers distinct from them.

Poverty Rate

The percentage of the population living below the national poverty line, which measures the minimum level of income considered necessary to achieve an adequate standard of living.

Business Cycle

Increases and decreases in the level of business activity that occur at irregular intervals and last for varying lengths of time.

War On Poverty

A set of government policies and programs initiated in the 1960s in the United States aimed at reducing poverty and improving living conditions for the impoverished.