Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

1. Introduction to Accounting

Useful Information

Financial Accounting

1. Introduction to Accounting

Useful Information

Previous problemNext problem

Struggling with Financial Accounting?

Join thousands of students who trust us to help them ace their exams!Watch the first video

Multiple Choice

The useful life of a plant asset is:

The period over which the asset is expected to be used by the company.

The length of time until the asset is sold or disposed of.

The period from the asset's purchase date to the end of the company's fiscal year.

The time it takes for the asset to be fully depreciated according to tax regulations.

Previous problemNext problem

Verified step by step guidance

Understand the concept of 'useful life' in financial accounting: Useful life refers to the estimated period during which a company expects to use a plant asset to generate revenue. It is not necessarily tied to tax regulations or fiscal year-end dates.

Analyze the options provided in the problem: Evaluate each option to determine which aligns with the definition of useful life. For example, the useful life is not defined by the time until the asset is sold or disposed of, nor is it tied to the fiscal year-end.

Focus on the correct definition: The useful life is the period over which the asset is expected to be used by the company. This is the most accurate description based on accounting principles.

Clarify misconceptions: Useful life is distinct from the time it takes for an asset to be fully depreciated according to tax regulations. Depreciation schedules may vary, but they do not define the useful life of the asset.

Conclude with the correct understanding: The useful life is the period during which the company expects the asset to contribute to its operations, regardless of fiscal year-end or tax depreciation rules.