Useful life of an asset means the time for which any asset is usable in business for generating revenue for business.
useful life of fixed asset
According to useful life of an asset.
Expensing is the process of spreading the cost over an asset's useful life.
the useful life of an asset is the period over which an asset is expected to be available for use by an entity whiles economic life is the period over which an asset is expected to be useable by one or users
No, a long term asset must have a useful life of more than a year
useful life of fixed asset
According to useful life of an asset.
Expensing is the process of spreading the cost over an asset's useful life.
the useful life of an asset is the period over which an asset is expected to be available for use by an entity whiles economic life is the period over which an asset is expected to be useable by one or users
No, a long term asset must have a useful life of more than a year
Initially, depreciation for financial reporting purposes is based on an owner's estimate of the useful life of the asset in service. If later, the owner has better or additional information about the true useful life of the asset, he can revise his estimate of its useful life and take all remaining depreciation (on a going-forward basis) based on the asset's revised remaining useful life.
Any asset with the useful life of one or more than one year is Non-Expendable asset. Any asset with the useful life of less than one year is Expendable asset.
c
Yes and no. When a company purchases a fixed asset it is expensed through depreciation over the useful life of the asset.
Yes and no. When a company purchases a fixed asset it is expensed through depreciation over the useful life of the asset.
Straigt line depreciation = (total cost of asset - salvage value)/ useful life of asset.
An asset's useful life refers to the period over which it is expected to provide benefits, while its productive life refers to the period it actually remains in use and generates revenue. Differences could arise due to factors like technological advancements, changes in market demand, or maintenance practices that affect an asset's ability to remain productive beyond its expected useful life.