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

Question

1. salvage and functional

2. physical and functional

3. residual and salvage

4. functional and residual

Answer 1

2. Physical and Functional

Physical:  things wear out as they get older.

Functional:  assets become obsolete over time.

The salvage or residual value is a given and does not really contribute in any way to the decline in the usefulness of a fixed asset.

Answer 2

This is not difficult .. Hint .. as it gets older, the 'usage' you get out of it declines, and it's final 'second hand' value would also decline ..