Multiple choice

The main causes of depreciation include

  1. physical wear & tear

  2. passage of time

  3. changes in economic development

  4. all of above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Depreciation occurs due to multiple factors: physical wear and tear from usage, passage of time even without use (like in leasehold assets), and obsolescence from economic or technological changes. Since all three causes listed are valid reasons for depreciation, option D is the correct answer as it encompasses all factors.

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