When estimating the useful life of an asset, accountants do NOT consider
A) the cost to replace the asset at the end of its useful life.
B) obsolescence factors.
C) expected repairs and maintenance.
D) the intended use of the asset.

Question

Quizplus · Accepted Answer

The cost to replace the asset at the end of its useful life is not considered when estimating the useful life of an asset. Instead, factors like obsolescence, expected repairs and maintenance, and the intended use of the asset are taken into account to determine how long the asset will be useful before it needs to be replaced or significantly overhauled.

When Estimating the Useful Life of an Asset, Accountants Do