What is one issue a business can wncounter if its keeps an asset beyond its useful life

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05-06-2021
Business

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What is one issue a business can wncounter if its keeps an asset beyond its useful life

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Francocanacariidn Francocanacariidn · Answer 1 · 2021-06-09T21:04:18-04:00

Answer:

One issue a business can encounter if its keeps an asset beyond its useful life is the eventual impairment of the business production as a result of the use of a defective equipment or asset, that is, not suitable for economic production because it has already fulfilled its utility cycle.

Thus, for example, if a company continues to use old or obsolete machinery, it runs the risk that said machinery will cause damage or a decrease in the quality of the products.

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