Asked by Pramod Zade on Mar 10, 2024

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Verified

All of the following factors in computing depreciation are estimates except

A) cost.
B) residual value.
C) salvage value.
D) useful life.

Useful Life

The estimated period a fixed asset is expected to be usable for its intended purpose, important for depreciation calculations.

Residual Value

The estimated remaining value of an asset at the end of its useful life, often considered for depreciation calculations and lease contracts.

Depreciation

The accounting process of allocating the cost of a tangible asset over its useful life, reflecting wear and tear, decay, or decline in value.

  • Learn about the underlying concepts and strategies pertaining to asset depreciation, as well as different techniques for calculating depreciation rates.
  • Understand the concept of salvage value and its role in computing depreciation.
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Verified Answer

KM
Kalee Marie

Mar 10, 2024

Final Answer :
A
Explanation :
Cost represents the actual amount paid for the asset and is not an estimate. Residual value, salvage value, and useful life are estimates because they rely on assumptions about the future value and useful life of the asset.