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Depreciation

What are the ...

Question

What are the causes of providing depreciation?

A

Use of asset

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B

Passage of time

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C

Obsolescence

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D

All of the above

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Solution

The correct option is D
All of the above

All of the above are the causes of providing depreciation.

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Similar questions

Q. Obsolescence of a depreciable asset may be caused by
I. Technological changes
II. Improvement in the production method
III. Legal or other restrictions

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

Q. Obsolescence and inadequacy are called _______ factors causing depreciation

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 of 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. Obsolescence of a depreciable asset may be caused by
(I) Technological changes.
(II) Improvement in production method.
(III) Change in market demand for the product or service output.
(IV) Legal or other restrictions.
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