WBCS.LIVE practice question

Which of the following statements is correct regarding Depreciation? I. Depreciation is termed as loss of value of fixed assets due to wear and tear during its useful life. II. Depreciation does not take into account unexpected or sudden destruction.

Solve this multiple-choice question and check the correct answer with its explanation below.

Answer options

  1. Neither I nor II
  2. Only I
  3. Only II
  4. Both I and II

Correct answer and explanation

Correct answer: Both I and II