The Major Difference Between the Service Life of an Asset

question 8

Multiple Choice

The major difference between the service life of an asset and its physical life is that

• A)service life refers to the time an asset will be used by a company and physical life refers to how long the asset will last.
• B)physical life is the life of an asset without consideration of residual value and service life requires the use of residual value.
• C)physical life is always longer than service life.
• D)service life refers to the length of time an asset is of use to its original owner, while physical life refers to how long the asset will be used by all owners.

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Definitions:

Vagueness

A lack of clarity or precision in language or communication, often resulting in ambiguity or misunderstanding.

Ambiguity

The quality of being open to more than one interpretation; inexactness.

Language Community

A group of people who use the same system of language, symbols, or signs to communicate with one another.

Vague

Lacking clarity or preciseness in thought or expression; not clearly expressed or easily understood.