# Useful life

> Useful life — The period over which an asset is expected to contribute to cash flows, which sets the depreciation period — an estimate, revised prospectively.

Source: https://lopifi.com/glossary/useful-life
Part of: Lopifi — US GAAP books on autopilot, reviewed by a CPA (https://lopifi.com)

---

**What is useful life?** In accounting, useful life means the period over which an asset is expected to contribute to cash flows, which sets the depreciation period — an estimate, revised prospectively.

## Words this system refuses for it

- tax life
- warranty period

- **Category:** Fixed assets & leases
- **Specified in:** [Lexicon](https://lopifi.com/md/docs/domain/11-lexicon)
- **Related:** depreciation, period, asset