Which of the following is/are true regarding long-lived assets with a finite life?
A)The firm consumes the asset's services over time in generating revenues.
B)The balance sheet carrying value decreases over time as the firm recognizes the cost of the asset as an expense.
C)A portion of the acquisition cost is recognized as an expense each period.
D)Management must estimate the asset's finite life.
E)all of the above

Question

Quizplus · Accepted Answer

All of the options are true regarding long-lived assets with a finite life. The firm uses the asset to generate revenues; the asset's cost is recognized as an expense over time, reducing its carrying value on the balance sheet; a portion of the acquisition cost is recognized as an expense each period, and management must estimate the asset's finite life.

Which of the Following Is/are True Regarding Long-Lived Assets with a Finite