Average remaining life of a company's long-term operating assets is computed as ________.
A)the amount of depreciation expense divided by accumulated depreciation
B)the amount of accumulated depreciation divided by depreciation expense
C)the amount of depreciation expense divided by the balance of ending net fixed assets
D)the balance of ending net fixed assets divided by depreciation expense

Question

Quizplus · Accepted Answer

The average remaining life of a company's long-term operating assets is calculated by dividing the accumulated depreciation by the annual depreciation expense. This gives an estimate of how many years the assets are expected to last based on current depreciation rates.

Average Remaining Life of a Company's Long-Term Operating Assets Is