Asked by Queen Nahnuh on Apr 28, 2024
Verified
Which one of the following is not a factor that limits the service life of an asset?
A) operational use
B) adequacy
C) deterioration as a function of time
D) obsolescence
Service Life
The estimated use period or duration over which an asset is expected to be economically usable by one or more users, with proper maintenance and repairs.
Operational Use
The application or employment of resources, processes, and procedures to perform its intended functions or tasks within a business.
- Assess the effect of salvage value and lifespan on the process of asset depreciation.
Verified Answer
LN
Linda NguyenApr 29, 2024
Final Answer :
B
Explanation :
Adequacy refers to whether or not the asset is suitable for the intended use, and is not a factor that affects the service life of the asset itself. Operational use, deterioration as a function of time, and obsolescence can all contribute to a shorter service life for an asset.
Learning Objectives
- Assess the effect of salvage value and lifespan on the process of asset depreciation.