Depreciation can be thought of as:
A)the cost of wear and tear on physical assets such as equipment
B)a discount placed on aspects of your business
C)the result of business losses
D)the value of used goods

Question

Quizplus · Accepted Answer

Depreciation refers to the decrease in the value of an asset over time due to wear and tear or obsolescence. It is a non-cash expense that reflects the cost of using physical assets such as equipment, machinery, buildings, vehicles, and furniture in the production of goods and services. Depreciation can be calculated using various methods, such as straight-line depreciation, declining balance depreciation, or units-of-production depreciation. Option B, C, and D are not correct as they do not accurately describe depreciation.

Depreciation Can Be Thought of As