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What is physical deterioration?
20. What is physical deterioration?
- 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: D) The loss in the physical efficiency of an asset as it ages.
Explanation:
Physical deterioration is the misfortune in the actual effectiveness of a resource as it ages. Effectiveness in this setting alludes to the resource's capacity to create several capital administrations for a given measure of information sources. It is equivalent to "mileage" or " rot".