Once the Useful Life of a Depreciable Asset Has Been

question 28

True/False

Once the useful life of a depreciable asset has been estimated and the amount to be depreciated each year has been determined, the amounts can be changed.

---

Definitions:

Annuity

A financial product delivering fixed payments to an individual, typically over a period of time or for life, often used for retirement savings.

Sinking Fund

An arrangement to guarantee that funds are available to pay off a bond’s principal at maturity.

Payments

The transfer of money or goods in exchange for products, services, or to fulfill a legal obligation.

Principal

The amount of money originally invested or loaned, on which basis interest and returns are calculated.