What is depreciation?
  • a)
    Cost of using a fixed asset
  • b)
    The value of asset
  • c)
    Portion of a fixed assets cost consumed during the current accounting
  • d)
    Cost of fixed asset’s repair
Correct answer is option 'A'. Can you explain this answer?

Commerce Question

7 Answers
Nitika answered Sep 28, 2018
Depeiciation hmare asset ki vo value hoti h jo hm use kr chuke h that means hmara asset ki value used value se kam ho jayegi so correct option is (A) i.e. cost of using fixed asset mtlb hmare asset ki vo cost jo hm utilise ke chuke hn. hope this explanation is sufficient. If you find it helpful then let me know.

Priyanka Ravichandran answered Sep 27, 2018
According to carter depreciation is the permanant and gradual decrease in the value of assets by any cause....

Kusum Chugh answered Sep 27, 2018
Ans: Option 'A' is correct answer because --~In ACCOUNTING terms, DEPRECIATION is defined as the REDUCTION of recorded COST of a FIXED ASSET in a systematic manner until the VALUE of the ASSET becomes ZERO or negligible. ~DEPRECIATION allows a portion of the COST of a FIXED ASSET to the REVENUE generated by the fixed asset.~So we can rightly say that DEPRECIATION is COST of using a FIXED ASSET.

Mangala Nagaraj answered yesterday
Depreciation means loss , it decreases the value of an fixed asset ex building ,machinery etc it decreases value of asset by year finaly selling time asset price decreases

Aisha Agrawal answered Sep 27, 2018
Depreciation refers to wear and tear of fixet assets

Amit Ahlawat answered Aug 13, 2018
Depreciation: Depreciation is the systematic reduction of the recorded cost of a fixed asset. Examples of fixed assets that can be depreciated are buildings, furniture, leasehold improvements, and office equipment.

Manik Sodhi answered Aug 13, 2018
Correct answer is A as depreciation is the cost of using a fixed asset .It is the decrease in the value of a fixed asset due to wear and tear in the asset due to their constant use.example decrease in the value of machine as they become old.

This discussion on What is depreciation?a)Cost of using a fixed assetb)The value of assetc)Portion of a fixed assets cost consumed during the current accountingd)Cost of fixed asset’s repairCorrect answer is option 'A'. Can you explain this answer? is done on EduRev Study Group by Commerce Students. The Questions and Answers of What is depreciation?a)Cost of using a fixed assetb)The value of assetc)Portion of a fixed assets cost consumed during the current accountingd)Cost of fixed asset’s repairCorrect answer is option 'A'. Can you explain this answer? are solved by group of students and teacher of Commerce, which is also the largest student community of Commerce. If the answer is not available please wait for a while and a community member will probably answer this soon. You can study other questions, MCQs, videos and tests for Commerce on EduRev and even discuss your questions like What is depreciation?a)Cost of using a fixed assetb)The value of assetc)Portion of a fixed assets cost consumed during the current accountingd)Cost of fixed asset’s repairCorrect answer is option 'A'. Can you explain this answer? over here on EduRev! Apart from being the largest Commerce community, EduRev has the largest solved Question bank for Commerce.
Ask a question

Share with a friend

Forum Category

Upgrade to Infinity