The amount of use that the company expects to obtain from an asset before disposing of it is referred to as the life of the asset. (Enter only one word.)
Question
The amount of use that the company expects to obtain from an asset before disposing of it is referred to as the life of the asset. (Enter only one word.)
Solution
The term you are looking for is "useful."
In accounting and asset management, the "useful life" of an asset represents the period over which it is expected to be economically usable to the owner. This concept is important for various purposes, including depreciation calculations, budgeting, and financial reporting. The useful life is determined based on several factors, such as the asset's expected wear and tear, technological advancements, and any regulatory or legal limitations that may affect its utilization. It helps businesses allocate costs accurately over time, providing a clearer picture of financial health and asset management efficiency.
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