Even if the assets are not put to use, their value decreases due to the expiry of time
Especially when the assets are
a) Reduced by value
b) Reduced by cost
c) Exposed to adverse weather
d) both a) and b)
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Answer:
d) both a) and b)
Explanation:
Contracts, an oil well, or coal mine are other examples of wasting assets. In the financial markets, options are a wasting asset because their time value continually diminishes to zero at expiration.
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