Which of the following statements is true? a. The average age of the fixed assets is computed
Question:
Which of the following statements is true?
a. The average age of the fixed assets is computed by dividing accumulated depreciation by depreciation expense.
b. The fixed asset turnover ratio assists managers in determining the estimated future capital expenditures that are needed.
c. If net sales increases, the fixed asset turnover ratio will decrease.
d. A relatively low fixed asset turnover ratio signals that a company is efficiently using its assets.
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Related Book For
Cornerstones Of Financial Accounting Current Trends Update
ISBN: 9781111527952
1st Edition
Authors: Jay Rich , Jeff Jones, Maryanne Mowen , Don Hansen
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