The expected physical wear and tear on an asset should be taken into account when determining the useful life of the asset.

Question

Quizplus · Accepted Answer

The expected physical wear and tear on an asset is one of the factors that should be considered when determining the useful life of the asset, along with other factors such as technological advancements and changes in market demand. This is because assets will eventually degrade and reach the end of their useful lives, and understanding the expected level of wear and tear can help with planning for replacements or repairs.

The Expected Physical Wear and Tear on an Asset Should