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

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


Answer: C

Business

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