What is estimated useful life, Accounting Basics

Assignment Help:

Q. What is Estimated useful life?

The estimated useful life of an asset is the approximate time that a company can use the asset. Useful life is estimation not an exact measurement that a company must make in advance. But sometimes the useful life is determined by company policy example keep a fleet of automobiles for three years.

Accountants use different procedures for recording depreciation. The method exemplify here is the straight-line method. We confer other depreciation methods in section 10. Straight-line depreciation assigns the similar amount of depreciation expense to each accounting period over the life of the asset.


Related Discussions:- What is estimated useful life

Detailed steps for completing the work sheet, Q. Detailed steps for complet...

Q. Detailed steps for completing the work sheet ? Accountants use these preliminary steps in preparing the work sheet. The following segments describe the detailed steps for com

Vouchers, what is the exact meaning of journal that we doing entries??

what is the exact meaning of journal that we doing entries??

Treatment of fire insurance claim received , journal entry fire insurance c...

journal entry fire insurance claim received for previous year is 50% of its original claim

Ryan''s express has total credit sales, Ryan's Express has total credit sal...

Ryan's Express has total credit sales for the year of $178,000 and estimates that 3% of its credit sales will be uncollectible. Record the end-of-period adjusting entry on Decemb

calculate wacc and rate of return, Calculate WACC and Rate of Return ...

Calculate WACC and Rate of Return Capital Structure: 50% debt and 50% equity financing Current cost of debt is 2% above prime (Prime is currently 2.5%) cost of equity is e

Uoit has recently appointed you to prepare an independent, UOIT has recentl...

UOIT has recently appointed you to prepare an independent consulting report to analyze the university's current financial position and to provide some recommendations for improve

Graham maintains that formulation and implementation, Graham maintains that...

Graham maintains that formulation and implementation are phases in the strategic management process. Yolanda maintains that evaluation and estimation are also part of this proc

Numbers and measurements are the language of business., Numbers and measure...

Numbers and measurements are the language of business. Organizations look at results, expenses, quality levels, efficiencies, time, costs, etc. What measures does your department

Explain periodicity assumption of accounting, Q. Explain Periodicity assump...

Q. Explain Periodicity assumption of accounting? As-per to the periodicity (time periods) assumption accountants divide an entity's life into months or years to report its econ

A physical inventory on december 31 shows 2, a physical inventory on decemb...

a physical inventory on december 31 shows 2,000 units on hand. holliday sells the units for $12 each. the company has an effective tax rate of 20%. holliday uses the periodic inv

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd