Question

what is wasting assets definition with example​

Answer 1

Answer:

A wasting asset is a type of asset whose useful life is limited, and its value decreases over time, examples of which include fixed assets like vehicles, plant, property, and equipment or financial instruments like options.

Explanation:

Factory/ Buildings / Office Furniture

Vehicles

Machinery

Options

Natural Resource

Advantages of Wasting Asset

The primary advantage of owning an asset is its ownership and the fact that owning an asset costs much less than leasing in the long run.

Tax savings can be made by claiming depreciation against the equipment bought.

Disadvantages of Wasting Asset

Buying an asset may not be possible for a business with low capital if the initial cost of an asset is high.

The maintenance cost of an asset may be quite high, especially in the latter stages of its life.

Answer 2

wasting assert:

•Thease are the assert that get exhausted gradually in the process of evaluation

Example:

• mines •quarry

this answer will give you 2marks