Question

Depreciation is:
a. an income
b. an asset
c. a loss
d. a liability ​

Answer 1

Answer:

...........

Explanation:

ℎ ℎ

Answer 2

ANSWER :

Depreciation is

a. An income

b. An asset

c. A loss ✓

d. A liability

➣: Depreciation is a loss.

• The term "Depreciation" represents loss or diminution or decrease or decline in the value of fixed Asset.

MORE INFORMATION :

• The word "Depreciation" has been derived from the Latin word "Depretum". 'De' means 'decline' and 'pretum' means 'price'. Hence, "Depreciation" mean "decline in price".

• In accounting, depreciation is the process of allocating the net cost of fixed assets over ots estimated useful life.

• According to R.N. Carter, "Depreciation is the gradual and permanent decrease in the value of an asset from any cause".

• Depreciation is a charge agaisnt profit for a particular accounting period.

• Depreciation is always computed in a systematic and rational manner as it is not a sudden loss.

• The term 'depreciation' is used only in respect of tangible fixed assets.

• The amount of depreciation charged cannot exceed the book value of the asset.