Factors contributing to a decline in the usefulness of a fixed asset may be divided into which of the following two categories?

A) salvage and functional
B) physical and functional
C) residual and salvage
D) functional and residual

Usefulness

The degree to which something serves a practical purpose or satisfies a need.

Physical and Functional

Characteristics referring to the tangible aspects and performance capabilities of an asset or system.

Fixed Asset

Long-term tangible property, plant, or equipment that a company owns and uses in its operations to generate income, not expected to be consumed or converted into cash within a year.