When Estimating the Useful Life of an Asset, Accountants Do

question 18

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) obsolescence factors.
• C) expected repairs and maintenance.
• D) the intended use of the asset.

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Definitions:

Scientific Observation

The active acquisition of information from a primary source, using standardized methods to gather empirical evidence in a scientific context.

Unbiased

Lacking prejudice or favoritism; fair and impartial.

Categorizing

The process of sorting or arranging objects, ideas, or information into groups based on shared characteristics.

Psychophysiological Measure

Methods used to study the relationship between physiological processes and psychological states through the measurement of physical responses, such as heart rate or brain activity.