Suppose Mail Boxes Etc. buys a new copier for its store for $1000. A year later, when the firm wants to upgrade to a new copier, it finds that the old copier is only worth $750. Over the year the copier was used,__________ has occurred.

Question

Quizplus · Accepted Answer

The decrease in value of the copier from $1000 to $750 over the course of a year is due to depreciation. This is the gradual decrease in the value of an asset over time due to wear and tear, obsolescence, or other factors.