Multiple choice general knowledge

Depreciation means

  1. closure of a plant due to lock out

  2. closure of a plant due to labour trouble

  3. loss of equipment over time due to wear and tear

  4. destruction of a plant in a fire accident
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Depreciation is the accounting concept that recognizes the gradual loss of value in fixed assets (equipment, machinery, buildings) due to wear and tear, obsolescence, or passage of time. It allocates the asset's cost over its useful life, rather than treating it as an immediate expense.

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