The concept of depreciation assumes that the asset has a determinable useful life.

Question

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Depreciation is the gradual decrease in the value of an asset over time due to wear and tear, obsolescence, or other factors. This assumes that the asset has a finite useful life beyond which it will no longer be productive or useful. Therefore, the concept of depreciation is based on the assumption that the asset has a determinable useful life.

The Concept of Depreciation Assumes That the Asset Has a Determinable