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Commerce · Q183

Accounting

Graduate and Post Graduate · Commerce · question 183

Q183

In the calculation of depreciation, all of the following items are actually estimates except:

A.
Useful life
B.
Residual value
C.
Historical cost
Answer
D.
Salvage value

Answer: Option C

Solution

Answer: Option C
Solution:
In the calculation of depreciation, all of the following items are actually estimates except Historical cost. A historical cost is a measure of value used in accounting in which the price of an asset on the balance sheet is based on its nominal or original cost when acquired by the company.