In relation to evaluating non-current assets, indicate which of the following statements is TRUE? 1. The higher the asset turnover, the more effective a company is in using its resources to generate sales. 2. Too high a depreciation rate will result in increased reported profits for the period. 3. All non-current assets must be depreciated. 4. The older the assets are, the better the company is performing.
In relation to evaluating non-current assets, indicate which of the following statements is TRUE? 1. The higher the asset turnover, the more effective a company is in using its resources to generate sales. 2. Too high a depreciation rate will result in increased reported profits for the period. 3. All non-current assets must be depreciated. 4. The older the assets are, the better the company is performing.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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In relation to evaluating non-current assets, indicate which of the following statements is TRUE?
1. The higher the asset turnover, the more effective a company is in using its resources to generate sales.
2. Too high a
3. All non-current assets must be depreciated.
4. The older the assets are, the better the company is performing.
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