Which of the following statements is true? a. The average age of the fixed assets is computed

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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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Cornerstones Of Financial Accounting Current Trends Update

ISBN: 9781111527952

1st Edition

Authors: Jay Rich , Jeff Jones, Maryanne Mowen , Don Hansen

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