The Term Inadequacy, as It Relates to the Useful Life

Multiple Choice

The term inadequacy, as it relates to the useful life of an asset, refers to:

A) An asset that is no longer useful in producing goods and services.
B) The condition where the asset's salvage value is less than its cost.
C) The insufficient capacity of a company's plant assets to meet the company's growing production demands.
D) An asset that is worn out.
E) The condition where the salvage value is too small to replace the asset.