USEFUL LIFE Definition

Bookmark and Share

USEFUL LIFE is the expected period of time, in years, during which a depreciating asset will be productive.

Learn new Accounting Terms

PLS see PROFIT AND LOSS SHARING.

AVERAGE PAYMENT PERIOD (APP) is the number of days an entity takes to pay off credit purchases. As the average payment period increases, cash should increase as well, but working capital will remain the same. Formula: accounts payable / (total annual purchases / 360).

Suggest a Term

Enter Search Term

Enter a term, then click the entry you would like to view.