Which one of the following items is NOT a consideration when recording periodic depreciation expense on long-lived assets?
A) residual value
B) estimated useful life
C) cash needed to replace the long-lived asset
D) cost

Question

Quizplus · Accepted Answer

The cash needed to replace the long-lived asset is not a consideration when recording periodic depreciation expense. Depreciation is calculated based on the asset's cost, its estimated useful life, and its residual value, not on the future costs associated with its replacement.

Which One of the Following Items Is NOT a Consideration