Once an Asset Is Fully Depreciated,it May Not Be Used

question 141

True/False

Once an asset is fully depreciated,it may not be used any more,but must be sold or disposed of.

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Definitions:

Duration

A measure of the sensitivity of the price of a bond or other debt instrument to a change in interest rates, expressed in years.

Interest Rate Risk

The potential for investment losses due to fluctuations in interest rates, affecting the value of interest-bearing assets.

Default Risk

The possibility that a borrower will fail to meet the obligations of a debt agreement.

Adjustable Maturity Dates

Adjustable maturity dates refer to the flexibility allowed in the due dates of financial instruments, allowing for changes in the repayment schedule.