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    Question

    The ratio of a firm’s property, plant, and equipment,

    net of accumulated depreciation, to its annual depreciation expense is an estimate of:
    A Average age of firm’s assets Correct Answer Incorrect Answer
    B Remaining useful life of firm’s assets Correct Answer Incorrect Answer
    C Net depreciation Correct Answer Incorrect Answer
    D None of the above Correct Answer Incorrect Answer
    E Total depreciation Correct Answer Incorrect Answer

    Solution

    Remaining useful life of firm’s assets =   Net Property Plant and Equipment/depreciation expenses

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