[amp_mcq option1=”a certain figure” option2=”an estimate” option3=”a predetermined figure for all fixed assets” option4=”None of the above” correct=”option2″]
The correct answer is: B. an estimate.
The useful life of a fixed asset is the period of time over which it is expected to be used by the company. It is an estimate based on factors such as the asset’s expected physical and economic life, the company’s use of the asset, and the industry in which the company operates.
Option A is incorrect because the useful life of a fixed asset is not a certain figure. It is an estimate based on a number of factors.
Option C is incorrect because the useful life of a fixed asset is not a predetermined figure for all fixed assets. It is an estimate that is specific to each asset.
Option D is incorrect because the useful life of a fixed asset is an estimate, not a certain figure.