Multiple choice

Directions: State whether the following statement is True Or False.A diminution in the value of an asset on account of wear and tear, obsolescence or simply the passage of time is known as depreciation.

  1. True

  2. False
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A Correct answer
Explanation

Depreciation is the systematic allocation of the cost of a tangible asset over its useful life. It reflects the reduction in value due to wear and tear, obsolescence, or the passage of time.

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