A fall or decrease in the economic service potential of an asset as a result of wear, tear and obsolescence is referred to as?

By: |Published on: Jan 10|Categories: Accounting WAEC| 0 comments

A. Estimate
B. Depreciation
C. Asset
D. Useful Life

Correct Answer: Option B

B. Depreciation

Explanation

Depreciation is the reduction in the economic service potentials of an asset as a result of wears, usage, tears and passage of time.

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