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The major difference between the service life of an asset and its physical life is that?

1) The service life of an asset is longer than its physical life
2) The physical life of an asset is longer than its service life
3) The service life and physical life of an asset are the same
4) The service life and physical life of an asset are unrelated

User Sirandy
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1 Answer

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Final answer:

The service life of an asset can be shorter, longer, or the same as its physical life.

Step-by-step explanation:

The major difference between the service life of an asset and its physical life is that the service life can be shorter, longer, or the same as the physical life of the asset. The service life refers to the period of time during which the asset remains useful and productive in its intended purpose. On the other hand, the physical life refers to the total amount of time the asset can physically exist before it becomes completely unusable or obsolete.

User Mehdi Tahmasebi
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