The Useful Life of a Plant Asset Is

question 148

Multiple Choice

The useful life of a plant asset is:

• A) Never related to its physical life.
• B) Determined by law.
• C) Determined by the FASB.
• D) Its productive life, but not to exceed one year.
• E) The length of time it is productively used in a company's operations.

---

Definitions:

Footnote

A footnote in financial statements is an additional note provided at the bottom of a financial document, offering further explanation or disclosure about the figures presented.

Prior Period Adjustments

Adjustments made to correct errors in previously issued financial statements.

Net Income

The total earnings of a company after subtracting all expenses and taxes from total revenue, indicating profitability.

Net Income

The profit of a company after all expenses and taxes have been deducted from total revenue.