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Which of the following enhances the earning capacity of an asset?
Accountingmedium
AIncrease in working capacity of an asset
BReduction in operating costs
CReplacing damaged parts of an asset
Both A and C above Enhancement of earning capacity can be by way of replacement of worn out or damaged parts which retarded the earning capacity and increase in the working capacity increases the earning capacity of the asset.
Correct Answer: D. Both A and C above Enhancement of earning capacity can be by way of replacement of worn out or damaged parts which retarded the earning capacity and increase in the working capacity increases the earning capacity of the asset.
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