Question

State whether the given statement is true or false:

‘Unexpected obsolescence is a component of depreciation.’

Answer 1

This Statement is false.

Explanation:

Depreciation refers to the normal, gradual wear and tear of fixed assets due to use and the passage of time.
Unexpected obsolescence is a sudden fall in value due to technological change or other unforeseen factors, and it is not treated as a regular component of depreciation.