QUESTIONS 45 THROUGH 68 RELATE TO FINANCIAL STATEMENT ANALYSIS

60. Assume U.S. GAAP (generally accepted accounting principles) applies unless

otherwise noted.

A company acquires some new depreciable assets. Which of the following

combinations of estimated salvage value and useful life will most likely produce

the highest net profit margin?

A. low salvage value estimates and long average lives.

B. high salvage value estimates and long average lives.

C. high salvage value estimates and short average lives.

By accessing this mock exam, you agree to the following terms of use: This mock exam is provided to

currently-registered CFA candidates. Candidates may view and print the exam for personal exam

preparation only. The following activities are strictly prohibited and may result in disciplinary and/or legal

action: accessing or permitting access by anyone other than currently-registered CFA candidates; copying,

posting to any website, emailing, distributing and/or reprinting the mock exam for any purpose.