Explanation:

Let’s break it down:

- Option 1: Loss of value of fixed assets in use due to normal wear and tear

This is a classic part of depreciation. Machines, buildings, and equipment lose value as you use them because they physically wear down.

- Option 2: Loss of value of fixed assets in use due to normal rate of accidental damages

Not quite right. Depreciation doesn’t usually cover accidental damage—that’s usually a separate accounting item. Depreciation assumes predictable, expected loss, not one-off accidents.

- Option 3: Loss of value of fixed assets due to foreseen obsolescence

Definitely part of depreciation. Think computers or technology—sometimes they lose value because something new comes out, even if they still work.

- Option 4: All of these

This wraps all three together.

So, here’s the thing: Option 2 isn’t really what depreciation means. The real answer should only include normal wear and tear and foreseen obsolescence. Accidents are outside the scope.