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

Question

Quizplus · Accepted Answer

Cash needed to replace the plant asset is not a consideration when recording periodic depreciation expense on plant assets. Depreciation expense is based on the cost of the asset, its estimated useful life, and its salvage value. The cash needed to replace the asset is only relevant when it actually needs to be replaced, and is not a factor in determining the amount of periodic depreciation expense.

Which One of the Following Items Is Not a Consideration