When Estimating the Useful Life of an Asset, Accountants Do

question 32

Multiple Choice

When estimating the useful life of an asset, accountants do not consider

• A)the cost to replace the asset at the end of its useful life.
• B)vulnerability to obsolescence.
• C)expected repairs and maintenance.
• D)the intended use of the asset.

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Definitions:

Creativity

The use of imagination or original ideas to create something; inventiveness.

Flexibility

The ability to adapt or respond effectively to change, challenges, or new situations.

Fluency

The ability to express oneself easily and articulately or the smoothness of movement.

Ideas

Mental concepts or thoughts, ranging from abstract propositions to creative innovations and practical solutions.