Question

12. Which of the following is an external cause of depreciation(1)a. Wear and tear b. Depletion c. Passage of time d. Obsolescence

Answer 1

Answer:

Answer

The main causes of depreciation include the following :

1. Physical wear and tear - When the fixed assets are put to use, the value of such assets may decrease. Such decrease in the value of assets is said to be due to physical wear and tear.

2. Within the passage of time - When the assets are exposed to the forces of nature like weather, winds, rains, etc. the value of such assets may decrease even if they are not put to any use.

3. Expiration of legal rights - When the use of an asset is governed by the time bound arrangement, the value of such assets may decrease with the passage of time

Answer 2

Answer:

Explanation:

it is due to new invention from outside of the business