Gradual and permanent decrease in the value of an asset is known … - Vidyadip

MCQ

Gradual and permanent decrease in the value of an asset is known as _________.

A
Loss
B
Profit
✓
Depreciation
D
Scrap

✓

Answer

Correct option: C.

Depreciation

Depreciation is a reduction in the value of fixed asset due to normal wear & tear, usage and obsolescence.
Depreciation is a charge on profit & loss account, and debited to profit & loss account.
Gradual and permanent decrease in the value of an asset is known as depreciation.

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