MyQuestionIcon

1

You visited us 1 times! Enjoying our articles? Unlock Full Access!

Depreciation

Useful life o...

Question

Useful life of a depreciation asset should be estimated after considering:

A

Expected Physical wear & tear

No worries! We‘ve got your back. Try BYJU‘S free classes today!

B

Obsolescence

No worries! We‘ve got your back. Try BYJU‘S free classes today!

C

Legal or other limits on the use of the asset

No worries! We‘ve got your back. Try BYJU‘S free classes today!

D

Historical cost

No worries! We‘ve got your back. Try BYJU‘S free classes today!

E

(A), (B), & (C)

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

Open in App

Solution

The correct option is B (A), (B), & (C)
Useful life of asset is decided on the basis of its use and expected physical wear & tear, legal or other limits on the use of the asset.
Useful life means for how many years owner can use machine in good condition and with good output.

Suggest Corrections

thumbs-up

0

Similar questions

Q. __________ has defined depreciation as "a measure of the wearing out, consumption or other loss of value of a depreciable asset arising from use, effluxion of time or obsolescence through technology and market changes. Depreciation is allocated so as to charge a fair proportion of depreciable amount in each accounting period during the expected useful life of the asset. Depreciation includes amortization of assets whose useful life is predetermined."

Q. _______ has defined depreciation as "a measure of the wearing out, consumption or other loss of value of a depreciable asset arising from use, effluxion of time of obsolescence through technology and market changes. Depreciation is allocated so as to charge a fair proportion of depreciable amount in each accounting period during the expected useful life of the asset. Depreciation includes amortization of assets whose useful life is predetermined.

Q. Useful life of a depreciable asset should be estimated after considering certain factors. Which of the following factors is not mentioned by Accounting Standard-6 ?

Q. Which of the following factors should be considered while estimating the useful life of a depreciable asset?

Q. Depreciation is the fall in the ____________ of a fixed asset through physical wear and tear due to use or passage of time or from any other cause.

View More

Join BYJU'S Learning Program

similar_icon

Related Videos

lock

Depreciation

ECONOMICS

Watch in App

explore_more_icon

Explore more

Standard XII Economics

Join BYJU'S Learning Program

CrossIcon