When estimating the useful life of an asset accountants do not consider
A) the cost to replace the asset at the end of its useful life.
B) obsolescence factors.
C) expected repairs and maintenance.
D) the intended use of the asset.

Question

Quizplus · Accepted Answer

When estimating the useful life of an asset, accountants consider factors such as expected repairs and maintenance, the intended use of the asset, and obsolescence factors. However, they do not consider the cost to replace the asset at the end of its useful life because it is not relevant to estimating the useful life of the asset.

When Estimating the Useful Life of an Asset Accountants Do