Depreciation is
A)fall in the value of an exchange rate.
B)the decrease in the value of capital resulting from its use and obsolescence.
C)the decrease in the purchasing power of a dollar because of inflation.
D)part of consumption expenditure.
E)part of net domestic product at factor cost.

Question

Quizplus · Accepted Answer

Depreciation refers to the decrease in value of capital assets due to wear and tear, use, and obsolescence over time. It is a non-cash expense that is deducted from the value of the asset over its useful life for accounting purposes.

Depreciation Is