Practice mode Accounting

Which factors are mainly used to determine an asset’s economic life?

Correct answer B. Passage of time, asset usage, and obsolescence

Explanation

Economic life depends on physical wear from time and use and on obsolescence from technical change, not on tax rules or regulatory guidelines.

Report a problem

Answer checked How we write and check questions

Tip: press A, B, C or D to answer, and N for the next question.

Advertisement

Have a question about this answer?

Your email address will not be published. Required fields are marked *

Links and website addresses are not allowed in comments.