An asset's useful life
A) remains unchanged once it has been determined.
B) is the same as its physical life.
C) is affected by physical and economic factors.
D) is not affected by physical and economic factors.

Question

Quizplus · Accepted Answer

An asset's useful life is affected by both physical factors (such as wear and tear) and economic factors (such as changes in market demand). Therefore, answer choices A and D are incorrect. While an asset's useful life may be related to its physical life, the two terms are not interchangeable, making answer choice B incorrect.

An Asset's Useful Life