In calculating depreciation, the number of years of useful life of the asset is
A) known with certainty.
B) an estimate.
C) the estimated time period before repairs or maintenance will be required.
D) based on the cost of the asset.

Question

Quizplus · Accepted Answer

The number of years of useful life of an asset is an estimate because it is not possible to know with certainty how long the asset will be useful before it is acquired and put into use. This estimate is based on experience, industry standards, or manufacturer's recommendations, among other factors.

In Calculating Depreciation, the Number of Years of Useful Life