Question

Depreciation is the fall in the ____________ of a fixed asset through physical wear and tear due to use or passage of time or from any other cause.

• A. Quality
• B. Value
• C. Either (A) or (B)
• D. None of the above

Answer 1

The correct option is B Value

Physical wear and tear resulting from use: It is the cause of charging depreciation for the assets which lose their value from the constant use such as fixed assets such as building; plant, machinery etc. get worn out and torn out due to the regular use.