The Length of Service That a Business Expects to Get

question 69

Multiple Choice

The length of service that a business expects to get from an asset as expressed in years, units of output, miles or other measures is the:

• A)depreciable cost.
• B)estimated useful life.
• C)salvage value.
• D)accelerated depreciation method.

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Definitions:

Financial Statement

Reports that provide information about a company's financial condition, performance, and cash flows, including the balance sheet, income statement, and statement of cash flows.

Account

An account in accounting is a record within the general ledger that is used to collect and store debit and credit amounts.

Chart of Accounts

A structured list of all the financial and accounting accounts used by an organization to categorize and record financial transactions.

Transaction

An agreement or exchange between two parties that involves the transfer of goods, services, or funds.