The economic life of an asset may exceed the recovery period of the asset.

Question

Quizplus · Accepted Answer

The economic life of an asset refers to the period during which the asset is expected to generate revenue or benefits for the owner. This period may exceed the recovery period, which is the time required for the owner to recover the cost of the asset through tax deductions. Therefore, it is possible for an asset to continue generating revenue even after the recovery period has ended.

The Economic Life of an Asset May Exceed the Recovery