Question

8. Depreciation is charged on asset at a certain rate on:
a) Down payment
b) Cash price
c) Principal
d) None of the above​

Answer 1

Answer:

a) Down payment I think so

Answer 2

Depreciation is charged on an asset at a certain fixed rate on Principal.

Depreciation is defined as the financial worth of tangible assets over a time period because of customary use, wear and tear, and outdated nature. It is a bookkeeping standard that allots some part of the asset expense to the profit and loss (P&L) statement in a monetary year over asset's valuable life. The asset cost diminishes as its value reduces over the course of the years until it becomes zero or irrelevant. Notwithstanding, one asset that usually doesn't devalue is land, which increases in value over a period.