All of the Following Statements About the Useful Life Factor

question 209

Multiple Choice

All of the following statements about the useful life factor associated with depreciation are true except

• A)useful life is also called service life.
• B)useful life is an estimate of productive life.
• C)past experience with similar assets is helpful in establishing useful life.
• D)useful life is also called expected trade-in value.

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Definitions:

Limited Partnership

A business structure in which one or more of the owners may be granted limited liability as long as one partner is designated as a general partner with unlimited liability.

General Partnership

A business structure in which the business owners share the management and risk of the business.

Limited Liability

A legal structure that protects company owners' personal assets from business debts and liabilities.

Legal and Administrative Costs

Expenses incurred by a business for legal services and administrative operations.