The major difference between the service life of an asset and its physical life is thata. service life refers to the time an asset will be used by a company and physical life refers to how long the asset will last. b. physical life is the life of an asset without consideration of salvage value and servicelife requires the use of salvage value. c. physical life is always longer than service life. d. service life refers to the length of time an asset is of use to its original owner, whilephysical life refers to how long the asset will be used by all owners.

Question

Mayra Bishop

Business

5 March, 03:50

The major difference between the service life of an asset and its physical life is thata. service life refers to the time an asset will be used by a company and physical life refers to how long the asset will last. b. physical life is the life of an asset without consideration of salvage value and servicelife requires the use of salvage value. c. physical life is always longer than service life. d. service life refers to the length of time an asset is of use to its original owner, whilephysical life refers to how long the asset will be used by all owners.

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Emily Rios · Answer 1

A. service life refers to the time an asset will be used by a company and physical life refers to how long the asset will last.

Explanation:

A company might buy a copy machine that stays in excellent working order for 10 years, but slowly starts breaking down after 10 years so they sell it at a used office equipment sale. Someone else buys it at a discount and uses it for 2 more years before it completely stops working. It's service life was the 10 years that the original company used it, and it's physical life is the 12 years that it lasted before totally breaking down.