An analyst can estimate the average total life of depreciable assets by:
A) dividing average depreciable assets by depreciation expense for the year.
B) dividing depreciation expense for the year by average depreciable assets.
C) dividing average gross depreciable assets by accumulated depreciation.
D) Subtracting depreciation expense from accumulated depreciation.

Question

Quizplus · Accepted Answer

The average total life of depreciable assets can be estimated by dividing the average depreciable assets by the depreciation expense for the year, which gives an estimate of how long the assets will last.

An Analyst Can Estimate the Average Total Life of Depreciable