Question

“The permanent assets lose a portion of their value every year” it is called ............., Fill in the blank.

Answer 1

depreciation

“The permanent assets lose a portion of their value every year” it is called depreciation .

Answer 2

It is essential to know that the permanent assets lose a portion of their value every year.  It is called depreciation.

According to the accounting terms, the depreciation process is defined as a reduction of recorded amount of fixed asset in the systematic manner truly until the overall value of asset becomes negligible or zero.