Depreciation is
A)the value of worn-out equipment,machinery,and buildings.
B)the value of the decrease in business inventory stocks.
C)the value of the addition to the capital stock.
D)the decline in the value of the stock market,net of dividends.

Question

Quizplus · Accepted Answer

Depreciation refers to the decrease in the value of tangible assets such as equipment, machinery, and buildings due to wear and tear, usage, or technological obsolescence. It is a non-cash expense that reflects the decline in the usefulness and value of assets over time. B, C, and D are incorrect because they do not accurately describe depreciation.

Depreciation Is