All of the Following Are Used in Estimating a Depreciable

question 57

Multiple Choice

All of the following are used in estimating a depreciable asset's useful life except

• A)the asset's present condition.
• B)the useful life required by the government for tax purposes.
• C)experience with similar assets.
• D)current technology and industry trends.

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Definitions:

Retrospective Application Method

An accounting method that applies a new policy or correction as if it had always been in effect, adjusting past financial statements accordingly.

Previously Released

Referring to information or data that has been made available to the public before the current date.

All-Inclusive Income Concept

A method of accounting where every revenue, gain, expense, and loss is included in the income statement to give a comprehensive view of financial performance.

Straight-Line Method

It is an approach for evenly distributing the cost of an asset over its useful life.