Accounting · Depreciation
According to the accounting terminology framework, depreciation represents which of the following?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1The direct expense related to the asset's initial historical purchase price
- 2The total accumulated net profit earned from operating a non-current asset
- 3A provision against the loss of capital due to the asset's wear and tear, obsolescence, or passage of time over its commercial life✓
- 4The recoverable market value of an asset when it is finally sold
Correct answer
A provision against the loss of capital due to the asset's wear and tear, obsolescence, or passage of time over its commercial life
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