Question

When you hear the term depreciation, what comes to your mind?

• A. Distribution or allocation of fixed assets among the rightful owners
• B. Depletion of the price of assets following the modern market demand
• C. Reduction in the quoted price of any fixed asset in a set pattern
• D. Distribution Increase in value of assets over time

Answer 1

Answer:

C. Reduction in the quoted price of any fixed asset in a set pattern

Depreciation refers to systematic reduction in the value of an asset over time due to wear and tear or usage.