Identify the term used for an asset with a fixed determinable period of utility.
A)Useful life
B)Salvage value
C)Book value
D)Disposal value

Question

Quizplus · Accepted Answer

Useful life refers to the estimated period of time during which an asset will be reasonably useful to the owner. This is generally assessed based on factors such as wear and tear, technological obsolescence, and other influences that may impact its value over time. While useful life is not necessarily a fixed or determinable value for all types of assets, it is commonly used as a measure of the expected return on investment from a given asset. Therefore, option A is the correct choice. The other options (B, C, and D) do not accurately describe an asset with a fixed determinable period of utility.

Identify the Term Used for an Asset with a Fixed