Question's Short Description
1: Decrease in value of fixed assets 2: Caused by wear and tear and obsolescence 3: Charged every year on assets 4: Reduces profit but is a non-cash expense 5: Methods: SLM and WDV
Question's Long Description
1: It is the decrease in value of a fixed asset due to wear and tear
2: It is charged every year on assets like machinery, building, furniture
3: Common methods are Straight Line Method and Written Down Value Method
4: It is a non-cash expense but reduces profit
5: It helps in replacement of assets and shows true profit
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Reviews 0
athrav
2026-07-10 11:29:412: It is charged every year on assets like machinery, building, furniture
om
2026-07-10 11:30:263: Common methods are Straight Line Method and Written Down Value Method
pranav
2026-07-10 11:31:124: It is a non-cash expense but reduces profit
navin
2026-07-10 11:32:105: It helps in replacement of assets and shows true profit
shubam
2026-07-10 11:28:451: It is the decrease in value of a fixed asset due to wear and tear