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Total Assets to Debt Ratio

A decrease in...

Question

A decrease in value of fixed asset due to age, wear and tear ___________.

A

Appreciation

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B

Written down value

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C

Depreciation

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D

Accumulated depreciation

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Solution

The correct option is C Depreciation
Depreciation is a non-cash expense that reduces the value of an asset over time. Assets depreciate for below mentioned reasons:
Wear and tear
Obsolescence
Keeping idle for prolonged
Depletion

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