GK
INDIAN ECONOMY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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closure of a plant due to lock out
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closure of a plant due to labour trouble
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loss of equipment over time due to wear and tear
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destruction of a plant in a fire accident
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Detailed explanation-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.
Detailed explanation-2: -Depreciation means loss of fixed assets overtime due to wear and tear. Depreciation is also called consumption of fixed capital. Loss of fixed assets happen on account of normal wear and tear, normal rate of accidental damages and expected obsolescence. Was this answer helpful?
Detailed explanation-3: -Depreciation is when a tangible asset loses value over time due to wear and tear. This loss in value has to be accounted for when preparing a business’s financial statements.
Detailed explanation-4: -Depreciation is the decline in the value of assets due to passage of time, wear and tear, obsolescence and end of legal rights.