Asked by Pramod Zade on Mar 10, 2024
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.
Verified Answer
KM
Kalee MarieMar 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.
Learning Objectives
- 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.