Multiple choice

Directions: Choose the correct option for the given question.

Depreciation is the diminution in the value of a fixed asset mainly due to ______ and lapse of time.

  1. obsolescence

  2. change in fashion

  3. use

  4. all of the above

  5. none of these
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Depreciation is the systematic allocation of the cost of a fixed asset over its useful life. The primary causes include physical wear and tear from use, as well as the passage of time.

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