Every fixed asset loses its value due to use or other reasons This decline in the value of asset is ...........

Accountancy (11th) Chapter-7 Depreciation, Provisions and reserves

Download Solution PDF

Every fixed asset loses its value due to use or other reasons. This decline in the value of asset is known as

Amortization

Provisions

Depreciation

Devaluation

छोटे Courses बड़े Results

Master Chapter-7 Depreciation, Provisions and reserves

Prepare through Micro-courses

Try Now

Explanation:

The fixed assets are long-term assets. They help in the production of goods and services. However, when an asset is in use its value decreases due to the normal wear and tear, efflux of time and obsolescence. This reduction in the value of a fixed asset is known as depreciation.