Question 11 Not yet answered Marked out of 1.00 ct one P Flag question 20. C5.Ob

Question

Question 11 Not yet answered Marked out of 1.00 ct one P Flag question 20. C5.Obsolescence: O a. Refers to the insufficient capacity of a company's property, plant and equpment to mee the company's productive demands O b. Does not affect property, plant and equipment. O c. Occurs when an asset is at the end of its useful life. O d. Refers to an item of property, plant and equipment that is no longer useful in producing goods and services with a competitive advantage O e. Occurs when an asset's residual value is less than its replacement cost.

Explanation / Answer

Answer =1)

Obsolescence: When the assets are becoming the old and life of the assets is complete than the assets will become the obsolescence.

So As per the aove correct answer ,

Option C = Occures when the assets is at the end of the useful life

Answer = 2)

Whenever we create the allowance for doubtfill debts than we can debit the revenue account as bad debt debit and if the any amount is recoverable from the bad debts earlier expenses created will increse the profit with the same amount because earlier write off amount will be write back because of its receipt .

So the answer =

Answer = Option C = An increase in net profit

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