When examining an external financial report, a ratio that can be useful in determining the approximate age of the assets is:

Question

Quizplus · Accepted Answer

The ratio of accumulated depreciation to average recorded property, plant and equipment at cost can give an indication of the age of the assets. If the ratio is high, it suggests that the assets are relatively old and have been subject to a significant amount of depreciation.

When Examining an External Financial Report, a Ratio That Can