Obsolescence:
A)Occurs when an asset is at the end of its useful life.
B)Refers to a plant asset that is no longer useful in producing goods and services.
C)Refers to the insufficient capacity of a company's plant assets to meet the company's productive demands.
D)Occurs when an asset's salvage value is less than its replacement cost.
E)Does not affect plant assets.

Question

Quizplus · Accepted Answer

Obsolescence refers to a plant asset that is no longer useful in producing goods and services due to technological advancements or changes in market demand, even if it is still functional.