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A decrease in value of a fixed asset due to age, wear and tear is known as
Depreciation
Accumulated depreciation
Appreciation
Written Down Value (WDV)
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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