Average age of a company's long-term operating assets is computed as ________.
A) the amount of depreciation expense divided by accumulated depreciation
B) the amount of accumulated depreciation divided by depreciation expense
C) the amount of depreciation expense divided by the balance of ending net fixed assets
D) the balance of ending net fixed assets divided by depreciation expense

Question

Quizplus · Accepted Answer

The average age of a company's long-term operating assets is calculated by dividing the accumulated depreciation by the depreciation expense, which gives an estimate of how many years the assets have been depreciating.

Average Age of a Company's Long-Term Operating Assets Is Computed