Which of the following enhances the earning capacity of an asset?
A)Increase in working capacity of an asset
B)Reduction in operating costs
C)Replacing damaged parts of an asset
D)Both (a) and (c) above

Question

Quizplus · Accepted Answer

Enhancing the earning capacity of an asset involves increasing its efficiency or reducing its operating costs. Increasing the working capacity of an asset (A) and replacing damaged parts (C) both contribute to improving the asset's performance and reliability, thereby enhancing its earning capacity.

Which of the Following Enhances the Earning Capacity of an Asset