Q1 What is depreciation? what is the need for providing Depreciation.
Answers
Answer:
Need to Provide Depreciation
Depreciation needs to be provided because an asset is bound to undergo wear and tear over a period of time. This reduces the working capacity and effectiveness of the asset. Hence, this should reflect the value of the asset, at which it is carried in the books of accounts.
Answer:
Definition: The monetary value of an asset decreases over time due to use, wear and tear or obsolescence. This decrease is measured as depreciation. ... Opposite of depreciation is appreciation which is increase in the value of an asset over a period of time.
Need to Provide Depreciation
Depreciation needs to be provided because an asset is bound to undergo wear and tear over a period of time. This reduces the working capacity and effectiveness of the asset. Hence, this should reflect the value of the asset, at which it is carried in the books of accounts.
Explanation:
hope it helps
please mark me brainliest