Average operating assets are calculated as
A) (Beginning net book value + Ending net book value)/2
B) (Beginning net book value - Ending net book value)/2
C) (Beginning fair market value + Ending fair market value)/2
D) (Beginning fair market value - Ending fair market value)/2

Question

Quizplus · Accepted Answer

Average operating assets are the average of the beginning and ending net book values. Net book value is the original cost of the asset minus any accumulated depreciation. Option A is the only choice that includes net book value in the formula. Options B, C, and D do not use net book value, so they are incorrect.

Average Operating Assets Are Calculated as