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What is physical deterioration?

20. What is physical deterioration?

1. Accounting techniques are used to periodically lower the book value of a loan.
2. Notable reduction in the utility of an inventory item or fixed asset.
3. Accrual accounting technique used to allocate the cost of extracting natural resources.
4. The loss in the physical efficiency of an asset as it ages.

Answer: D) The loss in the physical efficiency of an asset as it ages.

Explanation:

Physical deterioration is the misfortune in the actual effectiveness of a resource as it ages. Effectiveness in this setting alludes to the resource's capacity to create several capital administrations for a given measure of information sources. It is equivalent to "mileage" or " rot".