33. The major difference between the service life of an asset and its physical life is that A) service life refers to the length of time an asset is of use to its original owner, while physical life refers to how long the asset will be used by all owners. B) physical life is always longer than service life. C) service life refers to the time an asset will be used by a company and physical life refers to how long the asset will last. D) physical life is the life of an asset without consideration of salvage value and service life requires the use of salvage value.

33. The major difference between the service life of an asset and its physical life is that A) service life refers to the length of time an asset is of use to its original owner, while physical life refers to how long the asset will be used by all owners. B) physical life is always longer than service life. C) service life refers to the time an asset will be used by a company and physical life refers to how long the asset will last. D) physical life is the life of an asset without consideration of salvage value and service life requires the use of salvage value.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 9MC: The estimated economic life of an asset is also known as ________. A. residual value B. book value...

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What is the effective life of an asset? a. The total period of ownership of the asset, including when it is not installed and ready for use.. b. The period prior to the asset being abandoned or scrapped. c. The period that the asset can be used for income-producing purposes. d. All of the above.
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The time an asset is expected to last is called its a.fiscal period. b.depreciation. c.useful life. d.net loss value.
Question on, "what is depreciation".. Simple. I have tried it but confused about which choice.
8.1 For each of the following items, indicate whether the expenditure should be capitalized (“C”) or expensed (“E”) in the period when it was incurred: _______ A betterment _______ Replacement of a minor broken part on a machine _______ An expenditure that increases an existing asset's useful life _______ An expenditure that increases the efficiency and effectiveness of a productive asset but does not increase its residual value _______ An expenditure that increases the efficiency and effectiveness of a productive asset and its residual value _______ An expenditure that increases a productive asset's output quality _______ An overhaul to a machine that increases its fair market value and its production capacity by 30% without extending the machine's useful life _______ Ordinary repairs _______ A major overhaul _______ An expenditure that results in a 10%-per-year production cost saving _______ Costs of a major overhaul that brings the asset's condition back to “new,” with no change in…
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The life cycle costs of an asset include which of the following? I. Purchase cost of the asset II. Shipping and installation cost of the asset. III. Operating and maintenance cost of the asset IV. Salvage value of the asset. Solve, a. I and IV only b. I, III, and IV only c. I and III only d. I, II, III, and IV.
All of the following factors are considered in determining the useful life of an asset except: residual value b.expected usage of the asset technical obsolescence expected physical wear and tear
What is book value (or net book value) of plant and equipment and on which financial statement is it reported? Book value is the difference between Accumulated Depreciation and market value, and it is reported on the income statement. Book value is the difference between historical cost and Accumulated Depreciation, and it is reported on the balance sheet. Book value is the difference between Depreciation Expense and Accumulated Depreciation, and it is reported on the balance sheet. Book value is the difference between historical cost and market value, and it is reported on the balance sheet.
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