Explanation

Obsolescence is the state of being which occurs when an object, service, or practice is no longer maintained, required, or degraded even though it may still be in good working order.

Explanation

In financial planning, most high option price will lead to longer option period.

option period is a time frame or period of time, which is valid for an option to be exercised before or on the expiration date. 

Explanation

A deferred tax liability is a tax that is assessed or is due for the current period but has not yet been paid—meaning that it will eventually come due. 

Explanation

The function of a depreciation provision is to make a company's balance sheet more accurately reflect the current value of the investments it has made in fixed assets over time.

Explanation

Depreciation helps to tie the cost of an asset with the benefit of its use over time.

In other words, each year, the asset is put to use and generates revenue, the incremental expense associated with using up the asset is also recorded.

Explanation

The transactions which are recorded using adjusting entries are not spontaneous but are spread over a period of time. 

An adjusting entry always involves either income or expense account.