Factors That Should Be Considered in Determining the Useful Life

question 11

Multiple Choice

Factors that should be considered in determining the useful life of an intangible asset include

• A) Legal, regulatory, or contractual provisions.
• B) The residual value of the asset.
• C) The entity's expected use of the intangible asset.
• D) The effects of obsolescence, competition, and technological change.
• E) All of the above choices are used in determining the useful life of an intangible asset.

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Definitions:

Assets

Resources owned or controlled by a business, expected to bring future economic benefits.

Debits

In accounting, entries that increase asset or expense accounts, or decrease liability, equity, or revenue accounts.

Assets

Assets are possessions or properties held by a company, anticipated to yield economic advantages in the future.

Credits

An accounting entry that increases liabilities and equity or decreases an asset or expense account in double-entry bookkeeping.