Suppose Mail Boxes Etc. buys a new copier for its store for $1,000. 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

Depreciation refers to the decrease in value of an asset over time due to wear and tear, obsolescence, or other factors. In this case, the copier has decreased in value from $1,000 to $750 over the course of a year, indicating that depreciation has occurred. The other options listed (demarcation, devaluation, denouement, and disparity) do not accurately describe the situation.