Question

Depreciation in subsequent years (other than the first year) is ___________.

• A. a fall in the Original cost of an asset
• B. a fall in the Book value of an asset
• C. a fall in the market value of an asset
• D. all of the above

Answer 1

Answer: (B)

a fall in the Book value of an asset

Depreciation in subsequent years is a fall in the book value of an asset. Depreciation is related to all fixed assets.

it is apportioning the cost of the asset by writing it off over the life of the asset. It is also used to record the decline in the value of asset due to passage of time, wear and tear etc.