Final answer:
Obsolescence, supersession, and inadequacy are economic factors that can shorten the service life of an asset. These factors make an asset less valuable due to technological advances, replacement by superior products, or inability to meet increasing business demands.
Step-by-step explanation:
Economic factors that shorten the service life of an asset indeed include obsolescence, supersession, and inadequacy. These factors contribute to an asset becoming less useful or valuable long before the asset physically deteriorates. Here's a brief description of each:
- Obsolescence: This occurs when an asset becomes out-of-date due to technological advances. It's like when your cell phone uses outdated technology within a year or two of purchase.
- Supersession: Similar to obsolescence, but it refers to an asset being replaced by a superior product that performs the same function but better or more efficiently.
- Inadequacy: This occurs when the asset can no longer meet the increasing demands or changes in business, making it insufficient for the required tasks.
Therefore, the correct answer is D. All of these.