Question

Select the most appropriate answers from the alternatives given below and rewrite the sentence.

Depreciation arises because of __________.
a) wear and tear
b) inflation
c) fall in the value of asset
d) profit

Answer 1

Depreciation arises because of wear and tear.

Explanation:
In business, there are various fixed assets that have a definite life span after which their value decreases due to wear and tear. This fall in the value of the assets is termed as depreciation.