- 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
ABC Co. has the following accounts:
Property, plant & equipment: $120,000
Accumulated depreciation: 30,000
Total assets: $100,000
Gross profit: $50,000
Depreciation expense: 10,000
Tax expense: 5,000
Net Income: $35,000
B. 3 years.
C. 9 years.
Current assets: $10,000
Property, plant & equipment: $120,000
Accumulated depreciation: 30,000
Total assets: $100,000
Gross profit: $50,000
Depreciation expense: 10,000
Tax expense: 5,000
Net Income: $35,000
The average age of fixed asset is estimated to be:
A. 1 year.
B. 3 years.
C. 9 years.
Correct Answer: Correct Answer: B
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