Examveda
Examveda

A decrease in value of a fixed asset due to age, wear and tear is known as

A. Depreciation

B. Accumulated depreciation

C. Appreciation

D. Written Down Value (WDV)

Answer: Option A

Solution(By Examveda Team)

A decrease in value of a fixed asset due to age, wear and tear is known as Depreciation. Depreciation is an accounting method of allocating the cost of a tangible asset over its useful life and is used to account for declines in value. Businesses depreciate long-term assets for both tax and accounting purposes.

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