Accountancy, asked by ringkagbasumatary, 4 months ago

state the causes
of depreciation ?

Answers

Answered by kalpanably
0

Explanation:

The causes of depreciation are:

Wear and tear. Any asset will gradually break down over a certain usage period, as parts wear out and need to be replaced.

Perishability. Some assets have an extremely short life span. This condition is most applicable to inventory, rather than fixed assets.

Usage rights. A fixed asset may actually be a right to use something (such as software or a database) for a certain period of time.

Natural resource usage. If an asset is natural resources, such as an oil or gas reservoir, the depletion of the resource causes depreciation (in this case, it is called depletion, rather than depreciation).

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