Depreciation arises because of …………..

Wear & Tear

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Increase in value of asset

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Increase in the value of liability

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Decrease in capital

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Solution

The correct option is A
Wear & Tear

Depreciation arises because of Wear & tear because of which value of asset gets reduced.

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Similar questions

Give an example for each of the following types of transaction.
(i) Increase in one asset, decrease in another asset.
(ii) Increase in asset, increase in liability.
(iii) Increase in asset, increase in owner's capital.
(iv) Decrease in asset, decrease in liability.
(v) Decrease in asset, decrease in owner's capital.
(vi) Decrease in liabilities, increase in owner's capital.
(vii) Increase in one liability, decrease in another liability.
(viii) Increase in liabilities, decrease in owner's capital.

Q. Give one example of each of the following transactions:
(i) Increase in an asset and a liability.
(ii) Decrease in an asset and a liability.
(iii) Increase in assets and capital.
(iv) Decrease in assets and capital.

Q. Depreciation is the _________ in the value of fixed assets due to its wear and tear.

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

Q. An example of a Decrease in liabilities and increase in owner's capital is _________.

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Depreciation arises because of …………..

The correct option is A Wear & Tear Depreciation arises because of Wear & tear because of which value of asset gets reduced.

The correct option is A
Wear & Tear

Depreciation arises because of Wear & tear because of which value of asset gets reduced.