An asset's useful life is based on the:
A) asset's depreciable cost.
B) accountant's professional judgment.
C) asset's residual value.
D) schedule required by the IRS.

Question

Quizplus · Accepted Answer

An asset's useful life is based on the accountant's professional judgment. Although factors such as the depreciable cost and residual value may be considered, it ultimately comes down to the accountant's assessment of how long the asset will be useful in the business. The IRS schedule may be used as a guideline, but it is not the determining factor.

An Asset's Useful Life Is Based on The