- CFA Exams
- CFA Level I Exam
- Topic 4. Financial Statement Analysis
- Learning Module 7. Analysis of Long-Term Assets
- Subject 5. Using Disclosures in Analysis
CFA Practice Question
An estimation of the average age of a company's asset can be used to assess:
B. efficiency of assets
C. changes in acquisitions of assets
A. mix of assets
B. efficiency of assets
C. changes in acquisitions of assets
Correct Answer: Correct Answer: B
Estimating the average age of the assets can help in the assessment of efficiency; however, the estimate may be distorted by unknown changes in the mix of assets or material acquisitions made.
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