Companies can estimate when capital assets may need to be replaced in order to maintain operating capacity by using the following ratio(s):
A)fixed asset turnover.
B)average age %.
C)current.
D)inventory turnover.
E)all of the above

Question

Quizplus · Accepted Answer

Average age % provides an estimate of when fixed assets may need to be replaced by calculating the percentage of the asset's useful life that has already been consumed. This can help companies plan for future replacement and maintenance expenses. Fixed asset turnover, current ratio, and inventory turnover are not directly related to estimating asset replacement.

Companies Can Estimate When Capital Assets May Need to Be