alleryUseful life of an asset is:
AThe legal life in the deed
BPeriod of expected use
CManufacturer's warranty span
DAlways exactly ten years
Answer & Solution
Correct answer: B. Period of expected use
1. Useful life is the period over which the asset is expected to be available for use, or the units expected to be produced.
2. It depends on actual usage patterns, not legal or warranty terms.
3. Companies Act Schedule II gives indicative lives.
_Source: ICAI BoS Foundation Paper 1, Ch 5 "Depreciation & Amortisation", §1.1 def_
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