In calculating depreciation, the life of an asset refers to its:
A) technological life.
B) legal life.
C) useful life.
D) physical life.

Question

Quizplus · Accepted Answer

The life of an asset refers to its useful life - the period of time over which an asset is expected to be useful to the business before it becomes obsolete or inefficient. It is based on estimates of wear and tear, expected usage, and technological change. The legal life refers to the period of time during which an asset is required to be held based on legal or tax regulations, and may not necessarily align with the useful life. The physical life refers to the actual length of time an asset lasts before it is no longer usable.

In Calculating Depreciation, the Life of an Asset Refers to Its