Depreciation means ___________________.

Destruction of a plant in a fire accident

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Loss of fixed assets overtime due to wear and tear

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Loss of fixed assets in an earthquake

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Closure of the plant due to lockout

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Solution

The correct option is C Loss of fixed assets overtime due to wear and tear
Depreciation means loss of fixed assets overtime due to wear and tear. Depreciation is also called consumption of fixed capital. Loss of fixed assets happen on account of normal wear and tear, normal rate of accidental damages and expected obsolescence.

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