Accounting for IGCSE & O level - Accounting Procedures (Section 6 - No. 6)
What does the term "useful life" mean in relation to a depreciable asset?
The actual lifespan of the asset.
The period for which the asset is expected to generate revenue.
The period for which the asset is used by the business.
The period the company depreciates the asset.
Explanation
Useful life is the period of time over which an asset is depreciated, or written off, not necessarily how long it lasts.
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