[amp_mcq option1=”Useful life” option2=”Residual value” option3=”Historical cost” option4=”Salvage value” correct=”option3″]<\/p>\n
The correct answer is: C. Historical cost.<\/p>\n
Historical cost is the original amount paid for an asset. It is not an estimate, but rather a factual amount that can be verified from the accounting records.<\/p>\n
Useful life is the estimated period of time that an asset will be used by the company. It is an estimate based on factors such as the expected physical and economic life of the asset.<\/p>\n
Residual value is the estimated amount that an asset will be worth at the end of its useful life. It is an estimate based on factors such as the expected market value of the asset and the expected costs of disposal.<\/p>\n
Salvage value is the actual amount that an asset is worth at the end of its useful life. It is not an estimate, but rather a factual amount that can be verified from the sale of the asset.<\/p>\n
Therefore, the only item that is not an estimate in the calculation of depreciation is historical cost.<\/p>\n","protected":false},"excerpt":{"rendered":"
[amp_mcq option1=”Useful life” option2=”Residual value” option3=”Historical cost” option4=”Salvage value” correct=”option3″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[85],"tags":[],"class_list":["post-8874","post","type-post","status-publish","format-standard","hentry","category-accounting","no-featured-image-padding"],"yoast_head":"\n