Question

Gradual and permanent decrease in the value of an asset is called ________.

 

विकल्प

• scrap value

• cost price

• loss

• depreciation

Answer 1

Gradual and permanent decrease in the value of an asset is called depreciation.

Explanation:

Depreciation is the reduction in the value of fixed assets associated with their continuous use in the business. It is a permanent and gradual decrease in the value of fixed assets that have a definite span of life, after the expiry of which they lose their utility to a business.

Hence, the correct answer is option (d).