GB 518 RANK Career Path Begins/gb518rank.com GB 518 RANK Career Path Begins/gb518rank.com | Page 24

7 years
8 years
10 years

Question 9.

Question :

Obsolescence:

Occurs when an asset is at the end of its
useful life
Refers to a plant asset that is no longer
useful in producing goods and services
Refers to the insufficient capacity of a
company's plant assets to meet the company's productive
demands
Occurs when an asset's salvage value is
less than its replacement cost
Does not affect plant assets

Question 10. Question :
Pepsi's accounts receivable
turnover was 9.9 for this year and 11.0 for last year. Coke's
turnover was 9.3 for this year and 9.3 for last year. These results
imply that:
Coke has the better turnover for both
years