Depreciation encompasses the loss of value of fixed assets due to normal wear and tear, accidental damages, and foreseen obsolescence. It reflects how the asset's economic value decreases over time for various reasons, including those mentioned in all the options provided.

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Depreciation Is The

Question 11

Multiple Choice

Depreciation is the:

A) Loss of vale of fixed assets in use due to normal wear and tear
B) Loss of value of fixed assets in use due to normal rate of accidental damages
C) Loss of value of fixed assets in the due to foreseen obsolescence
D) All of these

Correct Answer: