Question

47) the economic factors causing depreciation are....
a)wear and tear
b)time factor
c)obsolescence and inadequacy
d)none

Answer 1

Answer:

A...................

Answer 2

The economic factors causing depreciation are obsolescence and inadequacy. ( Option c)

Depreciation can be caused by four different factors:

• Physical Impairment
• Economic Constraints
• Factors of Time
• Depletion

Because of obsolescence and inadequacy, economic factors develop.

• The process of becoming obsolete and out of date is referred to as obsolescence.
• Even if the asset is in good physical condition, new models and technologies may render it obsolete.
• Because of the firm's expansion and changes in size, inadequacy refers to the asset's utilization being halted.