Depreciation refers to the:
A)decline in the quality of output produced by a business.
B)fall in the price of output that the business produces.
C)spending by a business on new capital assets.
D)decline in capital due to wear and tear, obsolescence, accidental damage, and aging.

Question

Quizplus · Accepted Answer

Depreciation refers to the decline in the value of capital assets due to wear and tear, obsolescence, accidental damage, and aging. It is a non-cash expense that reflects the reduction in the book value of an asset over its useful life. It is important for businesses to account for depreciation when calculating their taxable income and assessing the true cost of their operations.

Depreciation Refers to The