Ask Question
BusinessBusiness
13 January, 11:07

Depreciation is defined as the Group of answer choices a. decrease in the stock of capital due to investment by firms. b. decrease in the stock of capital due to wear and tear. c. increase in the stock of capital due to investment by firms. d. increase in the stock of capital due to wear and tear.

+1
Answers (2)
  1. 13 January, 11:14
    0
    b. decrease in the stock of capital due to wear and tear.

    Explanation:

    Depreciation is a reduction in the value of an asset over time, due in particular to wear and tear.

    Depreciation is the gradual decrease in the economic value of the capital stock of a firm, nation or other entity, either through physical depreciation, obsolescence or changes in the demand for the services of the capital in question.

    The monetary value of an asset decreases over time due to use, wear and tear or obsolescence. This decrease is measured as depreciation ... Machinery, equipment, currency are some examples of assets that are likely to depreciate over a specific period of time.
  2. 13 January, 11:57
    0
    The correct answer is Option B.

    Explanation:

    Depreciation is defined as decrease in the available of an asset due to wear and tear, obsolescence, technological innovation, idleness, etc. Based on IAS 16 Property, plant and equipment, depreciation of an asset commences when it is available for use e. g., if an organization purchased a motor van and it is available for use but decided to park in the car park for long, whether it is being put to use or not, such asset would still be subject to wear and tear.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Depreciation is defined as the Group of answer choices a. decrease in the stock of capital due to investment by firms. b. decrease in the ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
If service revenue is $260,000, total expenses are $175,000, additional capital stock issued of $13,000 and dividends declared are $4,000, what is the change in retained earnings as a result of the closing process?
Answers (1)
Invoices should be coded for distribution in the general ledger by referring to the
Answers (1)
Brown Company has the following information at the end of the current year: Cost of Goods Manufactured $65,000 Beginning Finished Goods Inventory 3,000 Ending Finished Goods Inventory 6,000 Manufacturing Overhead 9,000 What is the amount of cost of
Answers (1)
If a company receives $10,400 from the stockholders to establish a corporation, the effect on the accounting equation would be:
Answers (1)
You bought one of Great White Shark Repellant Co.'s 5.6 percent coupon bonds one year ago for $1,051. These bonds make annual payments and mature 10 years from now.
Answers (1)
New Questions in Business
Bill Casler bought a $2000, 9-month certificate of deposit (CD) that would earn 8% annual simple interest.
Answers (1)
You win $200 in a basketball pool. You have a choice between spending the money now or putting it away for a year in a bank account that pays 3% interest.
Answers (1)
Suppose that a worker in Cornland can grow either 40 bushels of corn or 10 bushels of oats per year, and a worker in Oatland can grow either 20 bushels of corn or 5 bushels of oats per year. There are 20 workers in Cornland and 20 workers in Oatland.
Answers (1)
Knowing that Graeter's competes with multinational corporations as well as small businesses, would you recommend that Graeter's expand by licensing its brand to a company in another country? Why or why not?
Answers (1)
Sally overhears a phone conversation in an elevator of her office building in N. Y. C. discussing top secret financial matters regarding a corporation.
Answers (1)
Home » Business » Depreciation is defined as the Group of answer choices a. decrease in the stock of capital due to investment by firms. b. decrease in the stock of capital due to wear and tear. c. increase in the stock of capital due to investment by firms. d.
Sign Up Forgot Password?