Depreciation of the capital stock occurs due to:
A)machines deteriorating.
B)vehicles needing parts.
C)buildings needing repair.
D)all of the above.

Question

Quizplus · Accepted Answer

Depreciation of the capital stock occurs due to all of the above reasons, i.e., machines deteriorating, vehicles needing parts, and buildings needing repair. Over time, wear and tear reduce the efficiency, productivity, and value of these capital assets, which results in depreciation. Companies usually apply depreciation expense to represent the cost of capital assets' deterioration in their financial statements.

Depreciation of the Capital Stock Occurs Due To