11 A company that has a large investment in property, plant and equipment and that fails to systematically replace those assets generally reports a decreasing return on assets over the useful life of its asset base. True False 12 Expenditures on PP&E that increase future service potential should be added to the remaining unexpired cost of the asset and be charged to expense over the estimated remaining period of benefit. True False

11 A company that has a large investment in property, plant and equipment and that fails to systematically replace those assets generally reports a decreasing return on assets over the useful life of its asset base. True False 12 Expenditures on PP&E that increase future service potential should be added to the remaining unexpired cost of the asset and be charged to expense over the estimated remaining period of benefit. True False

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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