Which one of the following items is not a consideration when recording periodic depreciation expense on plant assets?

Question

Quizplus · Accepted Answer

The periodic depreciation expense is based on the cost of the asset, estimated useful life, and residual value. Cash needed to replace the plant asset is not a consideration when recording periodic depreciation expense, as it is a future cash outflow that will occur when the asset is eventually replaced or disposed of.

Which One of the Following Items Is Not a Consideration