Question

Write the word/term/pharse which can substitute each of the following statement :

A gradual, continuous and permanent reduction in the value of Fixed assets due to its use, wear and tear or any other Cause.

Answer 1

A gradual, continuous and permanent reduction in the value of Fixed assets due to use, wear and tear or any other Cause- Depreciation

Explanation:
Depreciation is the decrease or fall in the value of an asset with the passage of time, due to continuous use in business, normal wear and tear or any other cause. Fixed assets that are used in business have a definite life span after which they lose their value. Thus, depreciation is an allocation of the cost of an asset over its useful life.