In calculating depreciation, the life of an asset refers to its:
A)physical life.
B)legal life.
C)useful life.
D)technological life.

Question

Quizplus · Accepted Answer

The life of an asset refers to its useful life. This is the period during which the asset is expected to be useful to the business, and it is the period over which depreciation is calculated. The useful life is determined by considering factors such as expected wear and tear, technological advancements, and changes in market demand. It is not necessarily the same as the physical or legal life of the asset.

In Calculating Depreciation, the Life of an Asset Refers to Its