CFA Practice Question
The average depreciable life of fixed assets equals ______.
A. Ending Gross Investment/Depreciation Expense
B. Depreciation Expense/Ending Gross Investment
C. Accumulated Depreciation/Depreciation Expense
Explanation: This calculation is only a rough approximation, as it can be affected by changes in the asset mix.
User Contributed Comments 6
| User | Comment |
|---|---|
| copus | EASY QUESTION! Lets hope the examiners are feeling charitable in June...although I suppose the difficulty of the exam does not really matter because they grade on a curve. |
| escempep | Normaly, any candidate geting more than 70% of good answers is accepted.. |
| AUAU | Y not aim at above 70% marks ? It'll sure win! |
| ashish100 | just rub it in my face copus..... lol it really is such an easy question tho. my brain decided to make it complex. |
| ashish100 | C is for average age in years for the asset btw. |
| Albireo | Can someone explain this please? I just can't get my head around it! |