Which of these is not an area where judgement must normally be applied in order to calculate depreciation expense?
A)Determining the residual or disposal value of the asset.
B)Determining the expected useful life of the asset.
C)Choosing a depreciation method.
D)None of the above.

Question

Quizplus · Accepted Answer

All three areas mentioned - determining residual value, expected useful life, and choosing a depreciation method - require judgement and estimation in order to calculate depreciation expense. Therefore, none of them can be excluded as an area where judgement is not necessary.

Which of These Is Not an Area Where Judgement Must