Depreciation arises due to what?
فرسودگی کس وجہ سے ہوتی ہے؟
- Physical wear and tear of the asset
- Fall in the market value of the asset
- Fall in the value of money
- All of these
- None of these
Explanation
Depreciation helps to tie the cost of an asset with the benefit of its use over time.
In other words, each year, the asset is put to use and generates revenue, the incremental expense associated with using up the asset is also recorded.
Depreciation arises due to physical wear and tear of the asset.
Related MCQs
MCQs will be added soon
