The difference in the market value of a new van owned by a firm and the market value of the same van one year later is
A)economic depreciation.
B)physical depreciation.
C)economic deterioration.
D)physical deterioration.
E)conventional depreciation.

Question

Quizplus · Accepted Answer

The difference in market value of a new van owned by a firm and the market value of the same van one year later is referred to as economic depreciation. This is due to factors such as wear and tear, obsolescence, and changes in market demand. Physical depreciation and physical deterioration both refer to the physical wear and tear of the van, while economic deterioration is a broader term that includes factors beyond just physical wear and tear. Conventional depreciation is a term used in accounting to refer to the systematic allocation of the cost of an asset over its useful life.

The Difference in the Market Value of a New Van