Home › CBSE Class 12 (Commerce) › Accountancy › Financial Statements of a Company › Charging depreciation by estimating an asset's u…
Charging depreciation by estimating an asset's useful economic life is an example of
AA recorded fact
BA personal judgement
CAn accounting rule
DA legal requirement
Answer & Solution
Correct answer: B. A personal judgement
The useful life of a fixed asset must be estimated, so the depreciation charge rests on personal opinion and judgement.
Related questions
Labour unions use financial statements when negotiatingAnother name for the balance sheet is the statement ofMD&A in an annual report gives a narrative from the view ofInternational Financial Reporting Standards are developed by theGAAP stands forConsolidated statements present a parent and its subsidiaries asMoney received for services not yet provided is recorded asApple trees grown to produce apples are an example of