Financial analysts can make comparisons between the long-lived assets of two companies,both of which use straight-line depreciation,by computing the average useful life of assets with which one of the following formulas?

Question

Quizplus · Accepted Answer

C) Gross depreciable property, plant, and equipment / straight-line depreciation expense is the correct formula for computing the average useful life of assets when companies use straight-line depreciation. This formula gives an estimate of how many years it takes for the assets to be depreciated, which is a direct reflection of their useful life.

Financial Analysts Can Make Comparisons Between the Long-Lived Assets of Two