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.
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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
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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