Question

Fixed assets lose part of their value every year due to wear and tear with passage of time, such reduction is called ______ on fixed assets.

Options

• depreciation

• deduction

• production

• none of these

Answer 1

Fixed assets lose part of their value every year due to wear and tear with passage of time, such reduction is called depreciation on fixed assets.

Explanation:

Fixed assets lose part of their value every year due to wear and tear and even with passage of time. Such reduction in value is called depreciation and it is treated as a revenue expense.