The major difference between the service life of an asset and its physical life is that
A) service life refers to the time an asset will be used by a company and physical life refers to how long the asset will last.
B) physical life is the life of an asset without consideration of residual value and service life requires the use of residual value.
C) physical life is always longer than service life.
D) service life refers to the length of time an asset is of use to its original owner, while physical life refers to how long the asset will be used by all owners.
Correct Answer:
Verified
Q6: Intangible development costs and restoration costs are
Q28: Revaluation surplus is a temporary account which
Q32: Unrealized gains from revaluations do not increase
Q33: The activity method of depreciation
A)is a variable
Q33: Use of the sum-of-the-years'-digits method
A) results in
Q36: Which of the following is not one
Q37: A graph is set up with "yearly
Q38: Assets held for disposal should be reported
Q39: Although IFRS allows it, most companies do
Q47: Which of following is not a similarity
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents