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Book Value ______
  • a)
    always decreases with time
  • b)
    always increases with time
  • c)
    can either increase or decrease with time
  • d)
    remains constant
Correct answer is option 'A'. Can you explain this answer?
Verified Answer
Book Value ______a)always decreases with timeb)always increases with ...
Book Value: It is defined as the value of the property shown in the account book in that particular year, i.e. the original cost less the total depreciation till that year.
Thus, the book value of property gradually reduces at a constant amount year after year up to the limit of scrap value.
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Book Value ______a)always decreases with timeb)always increases with timec)can either increase or decrease with timed)remains constantCorrect answer is option 'A'. Can you explain this answer?
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