CBSE BoardEnglish MediumSTD 11 CommerceAccountDepreciation, Provisions and Reserves1 Mark
MCQ
Depreciation is allocation of _______________ amount.
A
Increase
B
Decrease
C
Valuable
✓
Depreciable
✓
Answer
Correct option: D.
Depreciable
Depreciation is provided on fixed assets on account of wear and tear of the asset by using them. Depreciation is provided on assets based on the useful life of the assets.
The main objective of providing depreciation is to allocate the depreciable value of asset to profit & loss account during the estimated life of the assets.
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