Question

The permanent assets lose a portion of their value every year. it is
called ----

Answer 1

The permanent assets lose a portion of their value every year. it is

called:

•Depreciation (Reduction in value over a period of time)

Answer 2

The permanent assets lose a portion of their value every year.

It is called depreciation. Permanent assets are also known as fixed assets.

They tend to decrease in their value after they are set to use.

Apparently, depreciation refers to the part of any fixed asset’s cost that gets expired on the account of the usage of it or/and on the time lapse in terms of accounting.