A Durable Good Is

question 6

Multiple Choice

A durable good is

• A) A product with an expected life of less than one year
• B) A product with an expected life of more than one year
• C) A product with an expected life of more than five years
• D) A non-physical product

---

Definitions:

Straight-Line Method

A depreciation method that allocates the cost of an asset evenly over its useful life.

Obsolescence

The process of becoming outdated or no longer used, often because of advancements in technology.

Depreciation Expense

An accounting method used to allocate the cost of a tangible asset over its useful life.

Residual Value

The estimated value that an asset will have at the end of its useful life.