Factors contributing to a decline in the usefulness of a fixed asset may be divided into which of the following two categories?
A) salvage and functional
B) physical and functional
C) residual and salvage
D) functional and residual

Question

Quizplus · Accepted Answer

Factors contributing to a decline in the usefulness of a fixed asset may be divided into two categories: physical factors, such as wear and tear, decay, and depletion; and functional factors, such as inadequacy and obsolescence. The given options do not correctly describe the categories of factors.

Factors Contributing to a Decline in the Usefulness of a Fixed