Which of the following best illustrates obsolescence as a cause of depreciation?

Type: MCQ • Marks: 1

A. A computer becomes outdated because newer technology makes it less useful

B. A building is painted

C. Cash is deposited in a bank

D. A liability is repaid

Explanation

Technological change can reduce an asset's useful service potential even if it remains physically functional.

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UPSC Principal & Vice Principal Management Finance Administration

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