When determining the estimated useful life of an asset, the useful life:
A) must be expressed in years.
B) must be the same for all companies.
C) is determined by GAAP.
D) is based on a company's experience and trade publications.

Question

Quizplus · Accepted Answer

The estimated useful life of an asset is based on a company's experience with similar assets and also trade publications. There is no specific requirement for it to be expressed in years or be the same for all companies. While GAAP does provide guidance on accounting for depreciation and amortization, it does not specifically mandate the estimated useful life of an asset.

When Determining the Estimated Useful Life of an Asset, the Useful