Accountancy, asked by LynxLada, 7 hours ago

Why there is fall in the value of Assets?​

Answers

Answered by haripriyayarlagadda4
1

Definition: The monetary value of an asset decreases over time due to use, wear and tear or obsolescence. This decrease is measured as depreciation. Description: Depreciation, i.e. a decrease in an asset's value, may be caused by a number of other factors as well such as unfavorable market conditions, etc.

Absolute value models value assets based only on the characteristics of that asset, such as discounted dividend, discounted free cash flow, residential income and discounted asset models. Relative valuation ratios, such as the P/E ratio, help investors determine asset valuation by comparing similar assets.What Are Unique and Hard-to-Value Assets? Unique assets include real estate, closely held businesses, mineral interests, loans and notes, life insurance, tangible assets, and collectibles. ... Across all of these asset types, one of the common challenges is that unique characteristics make these asset types hard to valueWhat does depreciation mean? Depreciation is what happens when assets lose value over time until the value of the asset becomes zero, or negligible. Depreciation can happen to virtually any fixed asset, including office equipment, computers, machinery, buildings, and so on

Answered by vishwa11747
1

Answer:

The monetary value of an asset decreases over time due to use, wear and tear or obsolescence. This decrease is measured as depreciation. Description: Depreciation, i.e. a decrease in an asset's value, may be caused by a number of other factors as well such as unfavorable market conditions, etc.

Explanation:

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