What Factor Will Not Affect the Estimated Useful Life of Property

question 10

Multiple Choice

What factor will not affect the estimated useful life of property, plant or equipment?

• A)Legal life of the asset.
• B)Technological obsolescence.
• C)Competitive pressures.
• D)Productive capacity.

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Definitions:

Liability

Refers to the legal responsibilities and obligations that arise from actions or omissions that could result in harm or loss to another party.

Warranty Liability

A legal obligation arising from warranty provisions that hold a seller or manufacturer responsible for defects or non-compliance of a product or service with the stated warranties or guarantees.

Transfer

The act of moving an asset, title, right, or interest from one entity or individual to another, which can occur through various means such as sales, gifts, or inheritance.

Acceptance

The act of agreeing to the terms of an offer, thereby creating a binding contract.