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What is obsolescence?
18. What is obsolescence?
- Accounting techniques are used to periodically lower the book value of a loan.
- Notable reduction in the utility of an inventory item or fixed asset.
- Accrual accounting technique used to allocate the cost of extracting natural resources
- The loss in the physical efficiency of an asset as it ages.
Answer: B) Notable reduction in the utility of an inventory item or fixed asset.
Explanation:
Obsolescence is an outstanding decrease in the utility of a stock thing or fixed resource. The assurance of oldness ordinarily results in a record of the stock thing or resource to mirror its decreased worth.