passwella.
Menu

GCE Financial Accounting 1989 Question 35

Question 35

Depreciation

Which of the following may cause depreciation? I. wear and tear II. obsolescence and passage of time III. fluctuation in prices.

  1. A.I, II and III
  2. B.I and II only
  3. C.I and III only
  4. D.II and III only
  5. E.III only
Show the answer and explanation

Answer: B (I and II only)

Explanation

Depreciation comes from use (wear and tear), going out of date and the passing of time, not from price changes.