All of the following are consistent with the purpose of determining the useful life of a long-lived asset except:
A) using the information to convey expectations about the future usefulness of the assets to stakeholders.
B) using the information to help project a rational basis for depreciation
C) using the information to help project a systematic basis for depreciation
D) using the information to manage earnings upward.

Question

Quizplus · Accepted Answer

Using the information to manage earnings upward is not consistent with the purpose of determining the useful life of a long-lived asset. Determining the useful life is meant to provide an accurate estimation of the asset's future usefulness and associated depreciation, not to deliberately manipulate earnings.

All of the Following Are Consistent with the Purpose of Determining