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Depreciation

Depreciation ...

Question

Depreciation of fixed capital assets refers to :

A

Normal wear and tear

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B

Foreseen obsolescence

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C

Unforeseen obsolescence

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D

Both A and B

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Solution

The correct option is D
Both A and B

Depreciation of fixed capital assets refers to normal wear and tear and foreseen obsolescence.

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Similar questions

Q. Unforeseen obsolescence of fixed capital assets during production is ________________.

Q. _______ refers to wear and tear of capital assets.

Q. __________ has defined depreciation as "a measure of the wearing out, consumption or other loss of value of a depreciable asset arising from use, effluxion of time or obsolescence through technology and market changes. Depreciation is allocated so as to charge a fair proportion of depreciable amount in each accounting period during the expected useful life of the asset. Depreciation includes amortization of assets whose useful life is predetermined."

Q. Depreciation of fixed capital assets refers to _______________.

Q. Depreciation is a measure of the wearing out, consumption or other loss of value of a depreciable asset arising from -
I. Use
II. Efflux of time
III. Obsolescence through technology and market changes
Select the correct answer from the options given below:

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