Which term refers to the safe disposal of mis assets at the end of their life cycle?

• A. Depreciation
• B. Asset Impairment
• C. Asset Retirement
• D. Amortization

Answer: (C)

Verified step by step guidance

1. Understand the concept of 'Asset Retirement': Asset retirement refers to the process of safely disposing of or decommissioning an asset at the end of its useful life, ensuring compliance with environmental and legal regulations.
2. Differentiate between the terms provided: Depreciation refers to the allocation of the cost of an asset over its useful life, Asset Impairment refers to a reduction in the recoverable value of an asset, and Amortization refers to the gradual write-off of intangible assets or liabilities.
3. Recognize that 'Asset Retirement' is specifically related to the safe disposal or decommissioning of assets, which is distinct from the other terms listed.
4. Consider the context of the question: The focus is on the end-of-life cycle of an asset, which aligns with the definition of 'Asset Retirement'.
5. Conclude that the correct term for the safe disposal of assets at the end of their life cycle is 'Asset Retirement'.