Explanation:

Let’s break it down:

- Option 1 says depreciation is the loss of value in fixed assets because of normal wear and tear. That’s spot on—think of machinery getting old and less efficient over time.

- Option 2 talks about accidental damages. That’s not typically covered by depreciation. Accidents are usually considered abnormal losses, not part of regular depreciation.

- Option 3 mentions obsolescence—basically, assets losing value because something better comes along or tech advances. That’s also a driver of depreciation.

- Option 4 says “All of these.”

So, here’s the thing—depreciation includes wear and tear (option 1) and obsolescence (option 3), but accidental damage (option 2) is not depreciation, it's a separate issue.

Correct Answer: Option 1 and Option 3 (but not Option 2, so not all of these).