For a capital asset to depreciate, it must physically wear out.

Name: For a capital asset to depreciate, it must physically wear out.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Depreciation is the gradual decrease in the value of a capital asset over time due to wear and tear, obsolescence, or other factors. It does not necessarily require physical wear and tear, as technological advancements or changes in market demand can also lead to the decrease in value of the asset.

For a Capital Asset to Depreciate, It Must Physically Wear