Accounting for IGCSE & O level - Accounting Procedures (Section 27 - No. 27)
In accounting for depreciation, what does the term "useful life" primarily refer to?
The physical lifespan of the asset.
The period during which the asset is expected to be used by the business.
The legal life of the asset.
The period over which the asset is expected to generate revenue.
Explanation
The useful life considers the period the business utilizes the asset.
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